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Investing.com - Canaccord Genuity raised its price target on Alphatec Holdings (NASDAQ:ATEC) to $25.00 from $20.00 on Friday, maintaining a Buy rating following the company’s third-quarter earnings report. The new target represents a 53% upside from ATEC’s current price of $16.33, with the stock trading near its 52-week high of $17.14 and up 108% over the past year.
The spine surgery technology company beat consensus estimates by over 7%, with surgical revenue growing 31% and EOS imaging technology revenue increasing 29%. Alphatec reported nearly 30% growth in surgical volume, 30% growth in established territories, and 26% growth in new surgeon users during the quarter. This performance aligns with the company’s impressive 26.3% revenue growth over the last twelve months, reaching $682.2 million.
Alphatec delivered strong financial performance with an over 30% adjusted EBITDA beat while reaching the top end of its cash flow generation expectation of $5 million for the quarter. The company now has significant financial reserves totaling $216 million in cash and available borrowing. InvestingPro data shows ATEC maintains a healthy current ratio of 2.88, indicating liquid assets exceed short-term obligations, though the company is not yet profitable.
Following these results, Alphatec increased its full-year revenue guidance by $18 million, which is over $4 million more than its Q3 beat. The company also raised its adjusted EBITDA guidance to $91 million, approximately $2 million more than its Q3 beat. This optimistic outlook is supported by four analysts who have revised their earnings upwards for the upcoming period, according to InvestingPro, which offers 11 additional ProTips and comprehensive analysis for ATEC.
Canaccord noted that Alphatec’s investments in sets and inventory during 2024 are supporting its commercial growth as its connected product portfolio expands, with the anticipated broader launch of its Valence robotic solution in Q4. With a market cap of $2.42 billion and strong momentum scores in InvestingPro’s Financial Health assessment, ATEC is positioning itself for continued growth in the spine surgery technology sector. Discover detailed insights in ATEC’s Pro Research Report, available among 1,400+ comprehensive company analyses on InvestingPro.
In other recent news, Alphatec Holdings Inc reported its third-quarter 2025 earnings, demonstrating a strong financial performance. The company’s revenue for the quarter reached $197 million, marking a 30% increase compared to the same period last year. Alphatec also exceeded earnings per share (EPS) expectations, reporting $0.03 against a projected loss of $0.04, representing a significant 175% surprise. These results highlight the company’s ability to outperform market forecasts. While the earnings call did not mention any mergers or acquisitions, the financial results have captured the attention of investors and analysts alike. No specific analyst upgrades or downgrades were noted in the recent updates. These developments reflect Alphatec’s current financial health and market position.
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