Buy Rating for Organogenesis: Favorable Medicare Pricing and Attractive Valuation Signal Growth Potential

BTIG analyst Ryan Zimmerman maintained a Buy rating on Organogenesis Holdings (ORGO – Research Report) yesterday and set a price target of $7.00.

Ryan Zimmerman has given his Buy rating due to a combination of factors influencing Organogenesis Holdings. The updated Medicare Part B pricing for skin substitute products suggests a favorable environment for revenue growth, as new products with high average selling prices are emerging. This scenario is likely to benefit manufacturers like Organogenesis, which could see meaningful revenue increases in the upcoming quarters.
Additionally, the valuation of Organogenesis is considered attractive, with a price target set at $7 based on a sales estimate over the next 12 to 24 months. This valuation represents a discount compared to its peers, suggesting potential for share price appreciation. Despite some risks related to reimbursement structures and sales, the company’s solid performance through fiscal year 2024 supports a stable valuation, providing confidence in the Buy rating.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ORGO in relation to earlier this year.