TD Cowen analyst Josh Jennings maintained a Buy rating on Alphatec Holdings (ATEC – Research Report) yesterday and set a price target of $22.50.
Josh Jennings has given his Buy rating due to a combination of factors that highlight Alphatec Holdings’ strong financial performance and positive outlook. The company concluded 2024 with robust fourth-quarter results that aligned with its earlier forecasts, demonstrating effective execution in capturing market share amidst recent disruptions in the spine market. This performance is expected to continue into 2025, supported by strategic cash management initiatives that are projected to result in positive cash flow for the year.
ATEC’s transition to positive free cash flow in the fourth quarter of 2024 marks a significant turnaround from previous quarters, where the company experienced substantial cash outflows. The management’s ability to meet its cash flow targets is encouraging, and the updated guidance for 2025 suggests a further improvement, with expectations of positive cash flow for the entire year. This financial trajectory, despite anticipated seasonal cash use in the first quarter, underscores the company’s potential for profitable growth, justifying the Buy rating.
According to TipRanks, Jennings is a 5-star analyst with an average return of 7.7% and a 54.12% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Alphatec Holdings, Boston Scientific, and Edwards Lifesciences.