Morgan Stanley Cuts Certara (NASDAQ:CERT) Price Target to $10.00

Key Points

• Morgan Stanley lowered its price target on Certara from $11 to $10 while keeping an equal weight rating, though that still implies significant upside from the current share price.
• Certara’s latest quarterly results were mixed: revenue of $106.92 million slightly beat estimates, but EPS of $0.09 missed consensus expectations of $0.11.
• Management’s FY 2026 guidance of $0.350-$0.410 EPS and $395 million-$405 million revenue came in below Wall Street forecasts, contributing to the stock’s weakness and new 52-week low.

Certara (NASDAQ:CERT - Get Free Report) had its price objective dropped by investment analysts at Morgan Stanley from $11.00 to $10.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 94.93% from the company's current price.

A number of other research firms have also recently issued reports on CERT. Craig Hallum cut shares of Certara from a "buy" rating to a "hold" rating and set a $10.00 price objective for the company. in a research report on Friday, February 27th. TD Cowen reiterated a "buy" rating on shares of Certara in a research report on Thursday, February 26th. Barclays reiterated an "equal weight" rating and set a $8.00 price objective on shares of Certara in a research report on Friday, March 6th. Wall Street Zen cut shares of Certara from a "buy" rating to a "hold" rating in a research report on Sunday, February 15th. Finally, KeyCorp decreased their price target on shares of Certara from $10.00 to $8.00 and set an "overweight" rating for the company in a research report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $9.80.

Certara Price Performance

CERT stock opened at $5.13 on Tuesday. The company has a 50 day simple moving average of $6.21 and a 200 day simple moving average of $8.01. The stock has a market cap of $786.53 million, a price-to-earnings ratio of -513.00 and a beta of 1.53. Certara has a 1 year low of $4.99 and a 1 year high of $13.88. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.05 and a quick ratio of 2.05.

Certara (NASDAQ:CERT - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.02). The company had revenue of $106.92 million for the quarter, compared to analyst estimates of $106.13 million. Certara had a positive return on equity of 4.20% and a negative net margin of 0.38%.Certara's revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.14 earnings per share. Certara has set its FY 2026 guidance at 0.350-0.410 EPS. Research analysts anticipate that Certara will post 0.29 EPS for the current fiscal year.

Hedge Funds Weigh In On Certara

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tejara Capital Ltd increased its position in shares of Certara by 94.9% during the third quarter. Tejara Capital Ltd now owns 273,052 shares of the company's stock worth $3,337,000 after buying an additional 132,927 shares during the period. Fort Washington Investment Advisors Inc. OH increased its position in shares of Certara by 133.4% during the fourth quarter. Fort Washington Investment Advisors Inc. OH now owns 2,272,823 shares of the company's stock worth $20,024,000 after buying an additional 1,299,109 shares during the period. Dixon Mitchell Investment Counsel Inc. acquired a new stake in shares of Certara during the third quarter worth $10,587,000. Sector Gamma AS acquired a new stake in shares of Certara during the third quarter worth $2,818,000. Finally, Kopion Asset Management LLC increased its position in shares of Certara by 49.9% during the fourth quarter. Kopion Asset Management LLC now owns 982,710 shares of the company's stock worth $8,658,000 after buying an additional 327,064 shares during the period. 73.96% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Certara

Here are the key news stories impacting Certara this week:

• Neutral Sentiment: Certara said its AI investments are intended to support long-term growth, which could help the company’s platform and future revenue opportunities. Certara says AI investments will drive long-term growth – but traders are focused on one warning
• Neutral Sentiment: The company reported quarterly revenue of $106.92 million, slightly ahead of expectations, showing modest top-line growth despite mixed overall results. Certara Reports First Quarter 2026 Financial Results
• Negative Sentiment: Adjusted EPS of $0.09 missed the $0.11 consensus estimate, reinforcing concerns that earnings momentum is weaker than expected. Certara, Inc. (CERT) Q1 Earnings Miss Estimates
• Negative Sentiment: Management cut FY 2026 guidance to EPS of $0.350-$0.410 and revenue of $395 million-$405 million, both below Wall Street forecasts, which appears to be the main reason the stock is falling. Certara (CERT) shares slide after weak full-year guidance overshadows revenue beat
• Negative Sentiment: The earnings miss and weaker outlook helped push CERT to a new 52-week low, and the stock was even halted briefly during trading due to a LULD pause, highlighting elevated volatility. Certara NASDAQ: CERT Hits New 52-Week Low After Earnings Miss

Certara Company Profile

Certara is a biosimulation software and services company that partners with pharmaceutical, biotechnology and medical device developers to accelerate drug discovery, development and regulatory approval. The company's platform integrates quantitative pharmacology, real-world evidence, artificial intelligence and machine learning to model and simulate drug behavior across a range of therapeutic areas and patient populations. By applying these mechanistic and data-driven approaches, Certara helps its clients predict clinical outcomes, optimize dosing strategies and streamline decision-making throughout the product lifecycle.

The company's offerings are divided into software tools and consulting services.

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