Street Calls of the Week
Investing.com - Citizens raised its price target on Artivion Inc. (NYSE:AORT) to $47.00 from $42.00 on Friday, while maintaining a Market Outperform rating on the medical device company’s stock. The company, currently trading at $40.35 with a market capitalization of $1.9 billion, has shown remarkable momentum with a 71% surge over the past six months, according to InvestingPro data.
The research firm cited Artivion’s robust pipeline that offers both near-term and long-term upside opportunities as the basis for the higher valuation. Citizens introduced initial 2027 estimates reflecting continued double-digit top-line growth and adjusted EBITDA growing approximately twice as fast as sales annually. While the company isn’t currently profitable, InvestingPro analysis indicates that net income is expected to grow this year, with multiple analysts revising their earnings expectations upward.
The firm views these growth parameters as achievable and possibly conservative, given the meaningful catalysts ahead within Artivion’s Aortic stent graft business. Citizens models Aortic stent graft revenue growth exceeding 20% year-over-year in 2025, followed by high-teens increases in both 2026 and 2027.
Citizens expects modest top-line acceleration in fiscal 2027 compared to 2026 for total sales as the company’s AMDS platform gains adoption. The firm noted that cybersecurity headwinds from late 2024, which impacted revenue by $4.5 million, are expected to be fully recouped by the third quarter of 2025.
The recovery from these cybersecurity issues will result in higher fiscal 2025 growth due to timing and easier comparables, according to the research firm’s analysis.
In other recent news, Artivion Inc. reported a robust second-quarter performance, with revenues reaching $113 million, surpassing both Stifel and consensus projections of approximately $108 million. This represents a 14% year-over-year organic revenue growth, largely driven by the success of its AMDS stent and stent-graft product in the United States. Following these strong results, Stifel raised its price target for Artivion to $46, highlighting the impressive growth of the On-X mechanical heart valve business, which expanded by over 20%. Meanwhile, Canaccord Genuity adjusted its valuation methodology, raising Artivion’s price target to $50 while maintaining a Buy rating. Needham also increased its price target to $50, citing positive developments with the NEXUS stent graft system, which Artivion has been distributing since 2019. Furthermore, Needham previously raised its target to $45, following Artivion’s second-quarter revenue and EBITDA results that exceeded expectations, leading the company to revise its 2025 revenue and EBITDA guidance upward. These developments reflect a series of positive analyst actions and strong market performance for Artivion.
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