BTIG downgraded Vericel Corporation (NASDAQ: VCEL) to Neutral from Buy, removing its prior $45 price target. Shares fell more than 7% on Wednesday following the call.
The firm noted that Vericel shares had dropped about 42% year-to-date after two weaker quarters. While BTIG had expected upside from the MACI Arthro launch in the second half of 2025, a survey of surgeons suggested limited incremental growth. Roughly 60% of surveyed physicians expected no change in MACI volumes, and lesion locations did not indicate new opportunities for the treatment.
Based on survey findings, BTIG projected a 20% increase in MACI procedure growth in fiscal 2026, in line with Street estimates, followed by slower growth averaging 14.8% annually through fiscal 2028. Coupled with modest price increases, the firm expected mid-to-high-teens overall growth, below consensus forecasts for fiscal 2026 and beyond.
BTIG added that while shares were trading at about 5x next-twelve-month EV/Sales, much of the current weakness was already reflected in valuation. However, without clear upside catalysts, the firm concluded that investor interest may not return in the near term.
