Xtant Medical Holdings, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ryan Zimmerman from BTIG maintained a Buy rating on the stock and has a $1.50 price target.
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Ryan Zimmerman has given his Buy rating due to a combination of factors that highlight Xtant Medical Holdings’ potential for growth and financial stability. The company’s recent financial results exceeded expectations, with a notable increase in license revenue contributing to a revenue boost. Despite a slight decline in the spinal implants segment, the focus on the orthobiologics segment aligns with the company’s strategic goals, and the gross margins have improved significantly.
Moreover, Xtant’s financial position is strengthened by a recent asset sale, which is expected to enhance the company’s balance sheet and reduce debt. The proceeds from this transaction, along with the current cash position, are anticipated to support the company’s operations without the need for additional capital. Additionally, Xtant Medical’s valuation, trading at a discount compared to its peers, presents a compelling opportunity for investors, as the company is poised for underlying growth with new product launches and investments in its commercial organization.