AxoGen stock target cut to $24 by Canaccord Genuity

On Monday, Canaccord Genuity adjusted the price target for AxoGen, Inc. (NASDAQ:AXGN), a medical technology company specializing in solutions for peripheral nerve injuries, to $24.00, down from the previous target of $26.00. Despite the reduction, the firm maintains a Buy rating on the company’s shares. The adjustment comes amid recent market volatility, with the stock experiencing a 32% decline over the past week, though maintaining an impressive 98% gain over the last year. InvestingPro analysis reveals 12 additional key insights about AXGN’s market position and growth potential.

The adjustment comes as Canaccord Genuity’s analyst Caitlin Cronin notes a shift in the market environment, specifically mentioning that "comparative multiples for the small cap group have retracted." This change in market dynamics has led to the revised price target, although the revenue estimate used in the valuation calculation has remained nearly unchanged. The company maintains strong financial health with a current ratio of 4.28 and operates with moderate debt levels, while delivering robust revenue growth of 19% in the last twelve months.

Cronin further explains the rationale behind the new price target, stating that while the revenue forecast is stable, the firm has increased the premium assigned to AxoGen compared to its small-cap peers. "We also increase our premium to the comp group from 30% to 55%," says Cronin, indicating a more bullish stance on the company’s valuation relative to the industry.

The target of $24 is based on a specific valuation multiple. "Our price target of $24 is based on a 4.5x EV/Sales multiple (55% premium to the mean small-cap excluding high/low MedTech comp group) applied to our 2026E revenue of $251.5M," Cronin elaborates. This method of valuation reflects the analyst’s expectation of AxoGen’s revenue growth and potential market performance in the coming years.

The new price target reflects a cautious yet optimistic view of AxoGen’s future market performance, with the Buy rating suggesting Canaccord Genuity’s continued confidence in the company’s prospects despite the recent adjustments to market comparative multiples.

In other recent news, AxoGen Inc. reported a net loss for the first quarter of 2025, which fell short of analysts’ expectations. The company posted an adjusted net loss of $0.02 per share, missing the forecasted earnings per share of $0.02. Revenue for the quarter was $48.6 million, slightly below the expected $48.66 million, despite a 17.4% increase year-over-year. The firm is maintaining its full-year revenue growth guidance of 15-17% and expects gross margins between 73-75%. AxoGen is also expanding its sales force and targeting high-potential accounts to drive growth. The company anticipates receiving BLA approval for its AVANCE nerve graft in September, which would secure twelve years of market exclusivity. Additionally, AxoGen announced a leadership transition, with Lindsay (NYSE:LNN) Hartley set to assume the role of Chief Financial Officer on May 12.

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