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Investing.com - Canaccord Genuity raised its price target on AngioDynamics (NASDAQ:ANGO) to $17.00 from $15.00 on Wednesday, while maintaining a Buy rating on the medical device company’s stock. According to InvestingPro data, the stock currently trades at $8.65, suggesting significant upside potential despite a recent 10% decline over the past week. InvestingPro analysis indicates the stock is currently undervalued.
The firm cited AngioDynamics’ "well-executed quarter" with growth driven by its Med-Tech business, which helped the company beat estimates across multiple metrics including Med-Tech revenue, Med-Device revenue, total revenues, adjusted EBITDA, and adjusted EPS. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.21 and more cash than debt on its balance sheet, though it’s currently trading at a high EBITDA multiple. (Discover 5 more exclusive InvestingPro Tips and comprehensive financial analysis with a subscription.)
AngioDynamics issued fiscal year 2026 guidance calling for Med-Tech revenue growth of 12%-15% and flat Med-Device growth, slightly ahead of Canaccord’s previous estimates. The company also reiterated expectations to become cash flow positive in FY26 despite anticipated margin impacts from tariffs. While analysts forecast continued losses with an EPS of -$0.21 for FY2026, the company maintains a healthy gross profit margin of 54%.
Canaccord identified mechanical thrombectomy as the primary short-term growth driver, with Auryon expected to provide mid-teens growth. NanoKnife is anticipated to build greater growth once its CPT 1 code takes effect on January 1, 2026, though management indicated this would not be an overnight catalyst.
The firm noted one area of concern was the low sequential growth of AngioDynamics’ AlphaVac product, though the company is investing in additional commercial resources and ancillary products that should help re-accelerate growth for this product line.
In other recent news, AngioDynamics Inc. reported its fourth-quarter fiscal 2025 results, highlighting a noteworthy earnings surprise and strong revenue growth. The company achieved an earnings per share (EPS) of -$0.03, significantly outperforming the forecasted -$0.12. Revenue for the quarter reached $80.2 million, surpassing expectations of $74.27 million and marking a 12.7% increase year-over-year. This growth was largely driven by the Medtech segment, which saw a 22% increase, contributing $35.8 million. Additionally, AngioDynamics provided guidance for fiscal year 2026, projecting net sales between $305 million and $310 million. The company expects the Medtech segment to grow by 12-15%, while Med Device sales are anticipated to remain flat. Analysts have noted that AngioDynamics continues to expand its international presence, particularly in Europe. The company also reported a reduction in its adjusted net loss, down to $1.1 million from $2.3 million in the previous year, with adjusted EBITDA improving to $3.4 million.
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