In a report released today, Sean Lee CFA from H.C. Wainwright maintained a Buy rating on Alphatec Holdings (ATEC – Research Report), with a price target of $20.00.
Sean Lee CFA’s rating is based on several key factors that highlight Alphatec Holdings’ potential for growth and resilience against external economic pressures. Despite uncertainties surrounding recent tariffs, the impact on Alphatec is expected to be minimal due to its reliance on U.S.-based manufacturers for its surgical business. This strategic sourcing limits the cost of goods sold impact to low single-digit percentages, translating to an estimated $4-8 million. Additionally, with only 7% of its revenue coming from international markets, Alphatec is less vulnerable to potential reciprocal tariffs.
Furthermore, Sean Lee CFA emphasizes Alphatec’s focus on revenue growth and profitability. Over the past four years, the company has demonstrated significant financial improvement, with adjusted EBITDA rising from -$38 million in 2021 to $31 million in 2024, and revenue increasing from $243 million to $612 million. The positive trends in surgeon adoption and surgical volume are expected to continue, with revenue projected to reach $732 million and adjusted EBITDA to grow to $75 million in 2025. The valuation analysis, which includes an EV-to-sales multiple and discounted cash flow analysis, supports a 12-month price target of $20.00 per share, reinforcing the Buy rating.
In another report released on April 7, Lake Street also maintained a Buy rating on the stock with a $18.00 price target.