Morgan Stanley Assumes Coverage of Certara (CERT) Stock

Certara, Inc. (NASDAQ:CERT) is one of the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds. Morgan Stanley assumed coverage of the company’s stock with an “Equal Weight” rating and a price objective of $16. The firm highlighted that it continues to monitor Certara, Inc. (NASDAQ:CERT)’s strategic review of its regulatory services business and potential opportunities stemming from the FDA’s announcement related to gradually reducing animal testing in favor of new approach methodologies, including in silico tools, computational modeling, and AI/ML.

Certara, Inc. (NASDAQ:CERT) has reiterated its guidance for FY 2025, with revenue expected to be within $415 million – $425 million and adjusted EBITDA margin to be between 30-32%. Certara, Inc. (NASDAQ:CERT) saw total revenue for Q1 2025 of $106.0 million, reflecting YoY growth of 10% on a reported and constant currency basis. Furthermore, the total revenue included $5.9 million of Chemaxon revenue.

Overall, the revenue growth was mainly because of growth in Certara, Inc. (NASDAQ:CERT)’s biosimulation software portfolio and contribution from M&A. Total bookings for Q1 2025 amounted to $118.2 million, representing YoY growth of 12% on a reported basis. Total Bookings consisted $4.9 million of Chemaxon bookings.

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Disclosure: None. This article is originally published at Insider Monkey.