In a report released today, Patrick Wood from Morgan Stanley maintained a Hold rating on Organogenesis Holdings (ORGO – Research Report), with a price target of $6.00.
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Patrick Wood’s rating is based on several factors impacting Organogenesis Holdings. The company’s first-quarter results for 2025 were adversely affected by ongoing uncertainty surrounding local coverage determinations for skin substitute grafts, with implementation now postponed to January 2026. This delay introduces a level of unpredictability that has led to a revision in sales growth projections for the year.
Additionally, the management’s updated sales guidance suggests a significant increase in sales towards the end of the year, which introduces further risk in achieving the annual targets. Despite these challenges, Organogenesis is actively working on gathering more clinical and real-world evidence for its product, PuraPly AM, which could potentially enhance future coverage discussions. Given these circumstances, Patrick Wood maintains a Hold rating as he awaits more clarity on the company’s long-term growth drivers.