Analyst Raises Price Target on Alphatec Holdings by 38.9% Amid Positive Q2 Results

Stifel Nicolaus's Mathew Blackman raised their price target on Alphatec Holdings (NASDAQ: ATEC) by 38.9% from $18 to $25 on 2023/08/04. The analyst maintained their Strong Buy rating on the stock.

Despite the company barely having any positive quarterly EPS, the analyst said Alphatec's 2023/08/03 Q2 2023 results "followed a similar script to the past few strong prints, with all the elements that should support a higher valuation." The company is "one of the few stories in their portfolio with meaningful revenue, P&L, and multiple upside," Blackman added.

For Q2 2023, Alphatec reported a loss per share of $0.43, which missed the Zacks Consensus Estimate of $(0.30) and Q2 2022’s $(0.36) by 19.4%. However, the company's revenue of $116.92M surpassed the Zacks Consensus Estimate of $110.18M and Q2 2022’s $84.15M by 38.9%.

Looking ahead, management guided for FY 2023 revenue of $462M and adjusted EBITDA of $2M. CEO Pat Miles expressed confidence in the company's spine focus and its ability to improve spine care through comprehensive procedures. Miles stated, "We are delivering unmatched clinical distinction, which is compelling strong surgeon adoption, attracting some of spine’s most talented sales professionals, and fueling industry-leading procedural volume growth."

In addition to Mathew Blackman's analysis, other analysts also updated their ratings and price targets for Alphatec on 2023/08/04. Morgan Stanley's Drew Ranieri raised their price target by 21.1% from $19 and maintained their Strong Buy rating on the stock. Needham's David Saxon raised their price target by 5.3% from $19 and maintained their Buy rating on the stock. Canaccord Genuity's Kyle Rose raised their price target by 29.4% from $17 and maintained their Strong Buy rating on the stock.

The consensus among top-rated analysts is overwhelmingly positive, with 100% of them rating ATEC as a Strong Buy or Buy. No analysts see it as a Hold, and there are no recommendations or strong recommendations to sell the stock.

Since ATEC's latest quarterly report on 2023/08/03, the stock price has experienced a 5.6% decline. However, year-over-year, the stock has shown impressive growth, surging 94%. During this period, ATEC has outpaced the S&P 500, which has seen a more modest increase of 7.9%.

Stifel Nicolaus analyst Mathew Blackman is ranked by WallStreetZen in the top 12% out of 4,288 Wall Street analysts, specializing in the Healthcare sector. Blackman has an average return of 32.8% and a 70.6% win rate.

Alphatec Holdings, Inc. is a medical technology company that focuses on designing, developing, and advancing technologies for the surgical treatment of spinal disorders. The company offers various products and systems aimed at reducing risk, improving patient outcomes, and addressing a range of spinal pathologies. Alphatec sells its products through a network of independent distributors and direct sales representatives in the United States.

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