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Canaccord Genuity initiated coverage on Artivion Inc. (NYSE: AORT) with a buy rating and a $35.00 price target on Tuesday. The research firm cited the cardiac surgery company’s strategic investments in aortic arch repair that are "on the verge of paying off." With a current market capitalization of $1.35 billion and trading at $28.73, the stock has shown strong momentum, gaining 24% over the past year. According to InvestingPro, the company’s overall financial health score is rated as "GOOD."
Artivion, a provider of aortic and abdominal grafts, mechanical and bioprosthetic tissue valves, and surgical sealants, has positioned itself as a leading player in products for cardiac and vascular surgeons. The company also processes and markets vascular graft tissues. Financial data from InvestingPro shows the company maintains a strong liquidity position with a current ratio of 5.53, while achieving a robust gross profit margin of 64% and revenue growth of 6% in the last twelve months.
The research firm highlighted Artivion’s strategic acquisitions, including JOTEC in 2017 and Acyrus Medical (TASE:BLWV) in 2020, along with a distribution and purchase option for Endospan secured in 2019. These investments specifically target growth in the aortic arch repair market.
Canaccord noted that Artivion’s Ascyrus AMDS product is currently launching in the U.S. under a Humanitarian Device Exemption, while Endospan’s NEXUS is expected to receive FDA approval and commercialize in late 2026. JOTEC’s Arcevo product is projected to gain FDA approval at the end of 2028.
These product launches should "bolster top-line growth and drive continued leverage for even faster adjusted EBITDA growth" over the next few years, according to the research firm’s analysis.
In other recent news, Artivion Inc. reported its first-quarter 2025 earnings, revealing a mixed performance. The company recorded revenue of $99 million, which fell short of the anticipated $104.65 million, yet earnings per share (EPS) of $0.06 significantly exceeded the forecast of $0.0003. Artivion’s sales growth was driven by the early launch of its AMDS product, contributing to a 19% year-over-year increase in the aortic stent graft business. However, the tissue processing segment experienced a 23% decline, impacted by a prior cybersecurity incident. The company has raised its full-year revenue guidance to 11-14% growth, indicating optimism for the remainder of the year.
Additionally, Artivion announced a private agreement to repurchase approximately $95 million in principal amount of its Convertible Senior Notes, exchanging them for common stock. This move is part of the company’s strategy to manage its debt effectively. In related developments, shareholders approved executive compensation and additional equity funding at the recent annual meeting. Analyst firms like JMP Securities and Stifel have maintained positive ratings on Artivion, with JMP reiterating a Market Outperform rating and Stifel maintaining a Buy rating. Both firms noted the company’s strong sales performance and potential growth opportunities in the U.S. market.
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