Barclays analyst Matt Miksic initiated coverage of Alphatec with an Overweight rating and $19 price target. Despite 30% growth in Q1 Surgical sales against a challenging 55% prior-year growth comp, concerns over the deployment of instruments and inventory in Q1 pushed the stock’s valuation below its long-term average and SMID-cap peers, creating an attractive buying opportunity, the analyst tells investors in a research note. The firm sees a “significant disconnect” between Alphatec’s solid execution execution and the stock performance in the first half of 2024. It expects improving cash flows throughout 2024 for Alphatec and decreasing focus on competitive sales rep hires.
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