Cantor Fitzgerald initiates Bioventus stock with Overweight rating on growth potential

Published 07/07/2025, 12:32
Cantor Fitzgerald initiates Bioventus stock with Overweight rating on growth potential

Investing.com - Cantor Fitzgerald initiated coverage on Bioventus Inc (NASDAQ:BVS) with an Overweight rating and a $12.00 price target on Monday. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $7 to $15, suggesting potential upside from current levels.

The research firm cited Bioventus’s strong position in the estimated $6.4 billion market for pain treatments, surgical solutions, and restorative therapies as a key factor behind its positive outlook.

Cantor Fitzgerald expressed confidence in Bioventus’s potential for EBITDA margin expansion in the near future, supported by the company’s high gross margin profile and scalable cost structure.

The firm believes these financial strengths will enable Bioventus to reduce its outstanding debt, further improving its financial position.

Cantor Fitzgerald also noted that Bioventus shares are currently attractively valued, contributing to its bullish stance on the medical technology company focused on musculoskeletal challenges.

In other recent news, Bioventus Inc. reported its Q1 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.06, compared to the forecasted $0.02. The company’s revenue reached $124 million, marking a 4% decline, but it achieved a 5% organic growth. Despite these positive results, Bioventus faced challenges, including negative operating cash flow and high outstanding debt of $346 million. The company remains optimistic, projecting organic revenue growth of 6-8% for 2025 and aims to nearly double its cash from operations by year-end. Additionally, Bioventus held its 2025 Annual Meeting of Stockholders, where several directors were elected to the Board, and Grant Thornton LLP was ratified as the independent registered public accounting firm. Bioventus also announced an expansion of its pain treatments portfolio with the addition of a platelet-rich plasma system, expected to enhance its market offerings. Analysts from firms like Craig Hallum and JPMorgan have shown interest in the company’s competitive positioning and strategic growth plans.

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