Leerink sees Certara's (CERT) valuation as overly depressed given what remains a highly profitable entity with multiple long-term growth drivers. This morning's acquisition of peer Simulations Plus (SLP) represents a roughly 90% premium to Leerink's current 2027 EV/EBITDA valuation for Certara. The firm thinks that, as the company moves through its investment period under new leadership, the opportunities to expand its model-informed drug discovery push should get the company back to steadier revenue growth, on top of healthy 30%-plus EBITDA margins. Today's news simply provides another context for private market valuation in the space, which is obviously well above where Certara is currently trading, Leerink argues, reiterating an Outperform rating on the stock.
