US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
On Monday, Cantor Fitzgerald analyst Ross Osborn reaffirmed Aziyo Biologics Inc. (NASDAQ:AZYO) price target at $8.00, while maintaining an Overweight rating on the company’s stock. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $8.00 to $10.00, suggesting significant upside potential for the company, which currently has a market capitalization of approximately $111 million. The firm’s analysis followed the release of Aziyo’s fourth quarter 2024 operating results, which showed a year-over-year revenue decline of approximately 7% to $5.5 million. This figure aligned with the FactSet consensus but fell short of Cantor Fitzgerald’s expectation of $6.3 million. InvestingPro analysis reveals the company’s broader financial health score is currently rated as WEAK, with trailing twelve-month revenue at $24.38 million and a gross profit margin of nearly 44%.
The revenue decrease was attributed mainly to a roughly 23% drop in sales of SimpliDerm, which came in at $2.3 million. However, the report wasn’t entirely negative, as Aziyo’s BioEnvelope products saw an approximate 18% increase to $2.7 million. This was largely due to strong initial sales of EluPro. In contrast, cardiovascular products experienced a decline of about 20% year-over-year, with sales totaling $0.5 million.
Looking ahead to 2025, Cantor Fitzgerald expressed optimism about Aziyo’s potential, citing the company’s successful pilot launch that resulted in approximately 100 accounts on contract. Furthermore, the imminent sales of EluPro by Boston Scientific (NYSE:BSX) are expected to drive incremental growth for Aziyo. The firm also referenced Medtronic (NYSE:MDT), Aziyo’s competitor in the envelope market, noting its annual revenue of around $200 million from a product considered inferior to EluPro. This comparison was used to illustrate the potential revenue base that Aziyo could achieve at a minimum. InvestingPro forecasts suggest revenue growth of 37% for FY2025, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US equities.
In other recent news, Aziyo Biologics reported a 7% decline in fourth-quarter revenue, totaling $5.5 million, which aligned with FactSet consensus but missed Cantor Fitzgerald’s expectations of $6.3 million. The revenue shortfall was largely due to a 23% drop in SimpliDerm sales, while the BioEnvelope product line saw an 18% increase, driven by the initial sales of EluPro. Cantor Fitzgerald maintained an Overweight rating on Aziyo Biologics with an $8.00 price target, showing optimism for the company’s future prospects, especially with the support from Boston Scientific for EluPro.
Elutia Inc. also reported a 7% year-over-year revenue decline for the fourth quarter of 2024, posting $5.47 million, which missed the anticipated $6.3 million. The company experienced an EPS shortfall, reporting -$0.26 compared to the expected -$0.24. Despite these results, Elutia highlighted the launch of EleuPro and its strategic partnership with Boston Scientific as key developments, aiming to leverage these for future growth.
Analysts from Cantor Fitzgerald have shown interest in Elutia’s distribution partnership with Boston Scientific, noting the potential for expanding EleuPro’s reach. Additionally, Elutia’s gross margin improved to 43% from the previous year’s 36%, indicating some positive financial trends despite overall revenue challenges. The company also completed a registered direct offering, raising $15 million in early February, which strengthens its cash position for future initiatives.
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