On Thursday, Needham raised its price target for Alphatec Holdings shares (NASDAQ:ATEC), a medical technology company, from $22.00 to $23.00 while maintaining a Buy rating. The adjustment follows Alphatec's recent Investor Day event last week, where the company provided long-range plan (LRP) targets for the year 2027, which exceeded analyst expectations.
The company's presentation at the Investor Day detailed future goals that prompted Needham to update its financial model, incorporating the new 2027 estimates that align with Alphatec's LRP targets. This update also includes feedback from marketing activities conducted over the past two weeks.
The firm's decision to revise the price target upward is a result of a higher revenue estimate for the year 2025, which is now reflected in the increased target. The analyst from Needham stated, "Given our higher 2025 revenue estimate, we have raised our price target to $23 from $22."
The stock's performance and investor sentiment will likely continue to be influenced by Alphatec's ability to meet or exceed its projected targets and by the broader market's reception of the company's strategic initiatives and financial health.
InvestingPro Insights
Following the recent optimism from Needham regarding Alphatec Holdings (NASDAQ:ATEC), InvestingPro data and tips provide additional context for investors considering the stock. The company currently has a market capitalization of $1.9 billion and is trading at a high Price/Book multiple of 24.38, reflecting a premium compared to the industry average. Despite a striking revenue growth of 37.45% in the last twelve months as of Q4 2023, analysts have revised their earnings downwards for the upcoming period and do not anticipate the company to be profitable this year. This is underscored by a negative P/E ratio of -11.54, indicating that the company has not been profitable over the last twelve months.
InvestingPro Tips suggest that while Alphatec's stock price movements are quite volatile, the company has managed a strong return over the last five years. Additionally, Alphatec's liquid assets exceed short-term obligations, which may offer some financial stability despite the lack of profitability. It is important to note that Alphatec does not pay a dividend to shareholders, which could influence the investment strategy for income-focused investors.
For those looking to dive deeper into Alphatec's financials and forecasts, InvestingPro offers a comprehensive suite of additional tips and metrics. To enrich your investment strategy with these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 6 more InvestingPro Tips available for Alphatec, which can be accessed at: https://www.investing.com/pro/ATEC.
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