AxoGen price target raised to $25 from $18 at Leerink

Leerink analyst Mike Kratky raised the firm’s price target on AxoGen (AXGN) to $25 from $18 and keeps an Outperform rating on the shares following the company’s Q4 earnings. Consistent with its preannouncement, AxoGen reported sales of $49.4M and gross margin of 76.1%. The company issued an initial FY25 sales growth guidance of 15%-17% year-over-year, equating to $215M-$219M, which falls above consensus $211M. Importantly, management outlined several key strategic priorities that should support a topline CAGR of 15%-20% over the next four years. Overall, while Leerink expects AxoGen’s upcoming BLA approval to remain the most prominent focus for investors, it continues to see an attractive risk/reward set-up for the shares.