Alphatec Holdings: Strong Financial Performance and Promising Future Outlook Justify Buy Rating

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 promising future outlook. The company’s first-quarter results surpassed market expectations, with a notable revenue increase of 22% year-over-year, reaching $169 million. This growth was driven by a 24% rise in surgical revenue and an 8% increase in EOS revenue, indicating a robust demand for ATEC’s offerings and a gain in market share within the US spine market.
Furthermore, Jennings points to Alphatec Holdings’ consistent execution on profitability goals, as evidenced by the fourth consecutive quarter of positive adjusted EBITDA, which stood at $11 million with a 6% margin. The company’s strategic focus on achieving positive cash flow by 2025 is on track, with management’s guidance suggesting continued positive cash flow in the upcoming quarters. These factors collectively support Jennings’s confidence in ATEC’s ability to sustain its strong performance and deliver long-term value to investors.

According to TipRanks, Jennings is a 2-star analyst with an average return of 0.2% and a 45.47% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Edwards Lifesciences, and Johnson & Johnson.

In another report released on April 14, H.C. Wainwright also maintained a Buy rating on the stock with a $20.00 price target.