Rick Wise, an analyst from Stifel Nicolaus, maintained the Hold rating on Avanos Medical (AVNS – Research Report). The associated price target is $17.00.
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Rick Wise’s rating is based on a combination of positive and negative factors influencing Avanos Medical’s performance. On the positive side, the company’s fourth-quarter results slightly exceeded expectations, with sales and earnings per share coming in above consensus estimates. This was supported by strong performance in the Digestive Health segment and successful business efficiency initiatives, which have improved the company’s operational outlook.
However, Wise also notes several challenges that justify the Hold rating. The hyaluronic acid injection business continues to face pricing pressures, which have impacted the company’s initial 2025 guidance. Additionally, uncertainties related to international tariffs, the timing of business dispositions, and the appointment of a permanent CEO contribute to a cautious outlook. Despite these challenges, the company’s solid balance sheet and potential for strategic capital deployment provide a foundation for meeting revised 2025 targets, but lingering uncertainties suggest a wait-and-see approach is prudent.