Canaccord Genuity analyst Caitlin Cronin maintained a Buy rating on Alphatec Holdings (ATEC – Research Report) yesterday and set a price target of $20.00.
Caitlin Cronin’s rating is based on Alphatec Holdings’ impressive financial performance and strategic positioning. The company reported strong revenue growth of 28% year-over-year for the fourth quarter of 2024, surpassing expectations. This growth is supported by significant improvements in operating leverage, as evidenced by a substantial expansion in adjusted EBITDA margins and a positive free cash flow of $9 million.
Cronin also highlights Alphatec’s strategic investments in its product portfolio and operational infrastructure, which have positioned the company well for future growth. The introduction of innovative technologies, such as the EOS Insight software, and the expansion of its implant portfolio have enhanced its market competitiveness, capturing an 8% market share. Additionally, organizational efficiencies and increased loan capacity are expected to strengthen Alphatec’s financial position, supporting sustained profitability and cash generation in 2025 and beyond. These factors collectively underpin Cronin’s Buy rating for the stock.
Cronin covers the Healthcare sector, focusing on stocks such as Globus Medical, Vericel, and Alphatec Holdings. According to TipRanks, Cronin has an average return of 16.1% and a 64.71% success rate on recommended stocks.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $22.00 price target.