These are top 10 stocks traded on the Robinhood UK platform in July
On Monday, H.C. Wainwright maintained a Buy rating on Alphatec Holdings (NASDAQ:ATEC), with a steady price target of $20.00. The medical device company, currently valued at $1.41 billion and focused on spinal surgery products, is expected to face minimal disruption from the newly announced tariffs, according to the firm’s analysis. InvestingPro data shows the company has demonstrated impressive growth, with revenue increasing by 26.81% in the last twelve months.
Swayampakula Ramakanth from H.C. Wainwright provided insights into the company’s current situation, noting that Alphatec’s surgical business relies almost entirely on U.S.-based manufacturers. This sourcing strategy is anticipated to result in a very low overall impact on the company’s cost of goods sold (COGS), with potential increases projected in the low single-digit percentages. In monetary terms, this could mean an additional $4-8 million in costs for Alphatec. The company maintains a healthy gross profit margin of 69.37% and a strong current ratio of 2.73, indicating solid operational efficiency and liquidity.
The analysis also took into account the active and forthcoming reciprocal tariffs imposed by the European Union, which affect potential imports of EOS, a medical imaging system, into the United States. Despite these considerations, the firm’s stance on Alphatec remains positive.
In 2024, Alphatec’s international market revenues accounted for approximately 7% of its total revenues. Given this small percentage, H.C. Wainwright believes that any further reciprocal tariffs would have a limited effect on the company’s financial health.
The firm’s reiteration of the Buy rating and the 12-month price target of $20.00 per share underscores confidence in Alphatec’s ability to navigate through the tariff-related challenges without significant financial strain. With the company’s next earnings report due on May 1, 2025, investors seeking deeper insights can access comprehensive analysis and additional metrics through InvestingPro, which offers exclusive access to detailed financial health scores and expert research reports for over 1,400 US stocks.
In other recent news, Alphatec Holdings announced its Q4 2024 earnings, reporting a revenue of $177 million, which exceeded analysts’ expectations of $170.35 million. Despite this revenue beat, the company reported an earnings per share (EPS) of -$0.23, missing the forecasted -$0.05. Alphatec also revealed plans for a private offering of $300 million in convertible senior notes due 2030, with an option for an additional $50 million. This move is aimed at funding capped call transactions to mitigate potential stock dilution and repurchasing existing notes due 2026.
TD Cowen maintained its Buy rating for Alphatec with a price target of $22.50, citing solid Q4 results and a positive outlook for 2025. The company projects a 20% revenue growth for 2025, driven by market share expansion and strategic initiatives in the spine market. Alphatec’s recent issuance of $405 million in convertible notes is part of its financial strategy to support corporate growth and manage existing debts. These developments highlight the company’s focus on financial maneuvers to enhance its market position and operational efficiency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.