In a report released today, Sean Lee CFA from H.C. Wainwright maintained a Buy rating on Alphatec Holdings (ATEC – Research Report), with a price target of $20.00.
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Sean Lee CFA has given his Buy rating due to a combination of factors that highlight Alphatec Holdings’ strong performance and promising outlook. The company reported a significant revenue increase in the first quarter of 2025, surpassing consensus estimates and demonstrating a 22% year-over-year growth, which is notably higher than the industry average. This growth was driven by an increase in surgical volume and revenue per case, and the company plans to expand its sales force to sustain this momentum. Additionally, Alphatec has raised its revenue guidance for 2025, indicating confidence in continued growth.
Furthermore, the company’s focus on improving profitability is evident through its consecutive quarters of positive adjusted EBITDA and a reduction in cash burn. Management has projected a substantial increase in adjusted EBITDA for 2025 and anticipates positive cash flow by the end of the year. The valuation of Alphatec’s stock is supported by an EV-to-sales multiple analysis and a discounted cash flow analysis, leading to a 12-month price target of $20. Despite potential risks such as commercial, partnership, regulatory, financial, and intellectual property challenges, the overall outlook for Alphatec remains positive, justifying the Buy rating.
Lee CFA covers the Healthcare sector, focusing on stocks such as Alphatec Holdings, Plus Therapeutics, and CASI Pharmaceuticals. According to TipRanks, Lee CFA has an average return of -5.0% and a 28.82% success rate on recommended stocks.
In another report released today, Barclays also reiterated a Buy rating on the stock with a $21.00 price target.