Alphatec Holdings (ATEC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Josh Jennings from TD Cowen maintained a Buy rating on the stock and has a $22.50 price target.
Josh Jennings has given his Buy rating due to a combination of factors that highlight Alphatec Holdings’ strong growth potential and financial performance. The company’s ability to maintain a 20%+ revenue growth trajectory is supported by its recent management meetings, which reaffirmed confidence in sustaining share capture. Additionally, profitability is reaching a pivotal point, as evidenced by the performance in the second half of 2024 and the guidance for 2025, which includes an adjusted EBITDA of $75 million.
ATEC’s revenue base has surpassed $600 million by the end of 2024, and the guidance for 2025 projects a total revenue of $732 million, indicating a 20% growth. This includes a 21% increase in Surgical revenue and a 12% increase in EOS revenue. Management’s confidence in achieving these targets is supported by ATEC’s historical track record of exceeding initial forecasts, as seen in 2023 and 2024. Therefore, Jennings views ATEC shares as undervalued relative to their long-term growth potential, making it a compelling buy opportunity.
In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a $21.00 price target.