Is this exciting healthcare stock a buy, hold or sell after rocketing 16% yesterday?

Can this soaring stock keep rising?

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ASX healthcare stock Vitrafy Life Sciences (ASX: VFY) continued its impressive run yesterday with a 16% jump. 

The company has now seen its share price rise almost 200% year to date. 

Six smiling health workers pose for a selfie.

Image source: Getty Images

Company overview

Vitrafy is a biotechnology company focused on improving cryopreservation, which is the process of freezing and storing biological materials such as cells, tissues, reproductive material, and potentially other medical or veterinary products.

The company has developed its own Vitrafy Cryopreservation Technology (VCT), which combines:

  • Smart freezing and thawing devices
  • Quality management software
  • Specialised packaging solutions

The goal of VCT is to better control temperature changes during freezing and thawing. This helps more cells survive and remain functional after they are thawed.

According to Vitrafy's testing and independent validation studies, its technology has produced higher cell survival rates and better cell quality than many existing industry methods and standards.

Why is it hitting new highs?

There was no price-sensitive news out of this healthcare stock on Tuesday. 

However, last week, the company announced a partnership with Vitalant Innovation Center ("Vitalant") to configure Vitrafy's next-generation cryopreservation ecosystem to solve the looming crisis for red blood cell preservation. 

The partnership aims to address a pivotal industry transition: as existing frozen red blood cell ("RBC") technologies reach the end of their operational life, with no replacement presently available.

Speaking on the partnership, Managing Director and CEO, Brent Owens, commented:

We are really excited to partner with Vitalant to actively address an issue of national significance with one of the leading blood market participants in the USA. 

The recognition of Vitrafy's cryopreservation ecosystem as the next generation solution to this crisis reinforces our belief that we are securing meaningful market traction and creating a pathway to significant commercial scale. 

We see this partnership as the first of several potential civilian blood opportunities that have stemmed from the successful results in the U.S Army platelets study.

This new partnership, along with recent contract wins, has likely propelled the healthcare stock to new all-time highs. 

Can this healthcare stock keep rising?

This ASX healthcare stock is now at a new 52-week high following Tuesday's gain. 

Holders of the stock may now be considering profit-taking, while prospective investors will be considering the future potential of this growth stock.

Earlier this year, Bell Potter placed a price target of $3.00 on this healthcare stock. 

Meanwhile, Morgans is optimistic about the company following recent contract wins. 

Despite the positive views, it is now trading above broker targets. 

However, it's worth noting that growth stocks can remain attractive investments even when trading above broker price targets. 

Rapid earnings and revenue growth can cause a company's intrinsic value and share price to increase faster than analysts can update their forecasts and rerate the stock.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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