In a report released yesterday, Ryan Zimmerman from BTIG maintained a Buy rating on Organogenesis Holdings, with a price target of $7.00.
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Ryan Zimmerman has given his Buy rating due to a combination of factors influencing Organogenesis Holdings. One of the primary reasons is the updated Medicare Part B pricing, which affects the company’s skin substitute products. Despite some reductions in pricing for specific products, the overall average sales price for skin substitutes has increased significantly. This trend suggests that Organogenesis is positioned to capitalize on the current market dynamics, even as smaller competitors may struggle under the new pricing structure.
Additionally, Zimmerman’s valuation of Organogenesis is based on a price target that reflects a meaningful discount compared to its peers. Despite the mixed performance due to regulatory changes, the company has shown solid results, which Zimmerman believes will support a steady valuation. This stability, combined with the potential for share price appreciation, underpins his Buy recommendation.
Zimmerman covers the Healthcare sector, focusing on stocks such as Organogenesis Holdings, Stryker, and PROCEPT BioRobotics. According to TipRanks, Zimmerman has an average return of -1.8% and a 42.51% success rate on recommended stocks.