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On Thursday, Canaccord Genuity sustained a positive outlook on AngioDynamics (NASDAQ:ANGO) shares, maintaining a Buy rating and a $15.00 price target. The company’s stock has shown remarkable momentum, with a 70% surge over the past six months and a recent 10% gain in the past week. The firm acknowledged the company’s consistent performance, following a third-quarter earnings report that surpassed expectations and led to an upgraded full-year guidance for fiscal year 2025.
The company’s third-quarter revenue reached $72.0 million, prompting AngioDynamics management to increase their projections for FY25 revenue, gross margins, and profitability. The revised revenue guidance now ranges from $285 million to $288 million, up from the previous estimate of $282 million to $288 million. This adjustment specifically reflects the growth of the high-investment Med Tech segment, which now expects year-over-year revenue growth of 15% at the midpoint, an increase from the previously forecasted 13.5%. According to InvestingPro data, the company maintains a healthy financial position with more cash than debt and a solid current ratio of 1.98, providing flexibility for continued investment in growth initiatives.
Canaccord Genuity analysts highlighted the Med Tech business’s role in driving the company’s growth, with cash flows from the Med Device sector supporting the innovative Med Tech division. Key product areas such as Auryon, Mechanical Thrombectomy, and NanoKnife were cited as having significant catalysts on the horizon, details of which were shared during a Cardiovascular investor event following the earnings announcement.
The analyst noted the potential of Auryon to become a multimodal laser platform and its prospects for continued growth. Mechanical Thrombectomy is reportedly experiencing consistent growth in an expanding market, while NanoKnife is anticipated to benefit from reimbursement tailwinds starting January 1, 2026. With AngioDynamics approaching sustained profitability expected in the next fiscal year, the analyst suggested that concerns about stock dilution are likely diminishing.
Reaffirming their Buy rating and price target, Canaccord Genuity expressed optimism for the company’s technological advancements and their impact on the stock’s value. The firm’s confidence is bolstered by AngioDynamics’ solid quarterly results and the increasing legitimacy of its Med Tech business. With a market capitalization of $439 million and trading near InvestingPro’s Fair Value estimate, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, AngioDynamics Inc. reported its fiscal second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.03, compared to a forecasted loss of -$0.11. The company also reported revenue of $72 million, exceeding the expected $70.57 million. This reflects a 9.2% year-over-year growth, with the MedTech segment seeing a 22.2% increase in revenue. Additionally, AngioDynamics improved its gross margin by 290 basis points to 54%, and its adjusted EBITDA reached $1.3 million, a significant improvement from the previous year’s loss of $3.6 million.
For fiscal 2025, the company projects revenue between $285 million and $288 million, with anticipated growth in MedTech net sales by 14% to 16%. AngioDynamics has also increased its guidance for total revenue, gross margin, adjusted EBITDA, and adjusted EPS. In terms of analyst activity, Canaccord Genuity and Oppenheimer have shown interest in the company’s performance, particularly in the AngioVac and NanoKnife product lines. The company’s strategic focus on high-margin MedTech products continues to drive its strong operational performance.
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