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On Friday, Cantor Fitzgerald reiterated an Overweight rating with an $8.00 price target on shares of Aziyo Biologics Inc . (NASDAQ:ELUT), following the company’s fourth-quarter earnings report. The stock, currently trading at $2.55, has seen significant pressure with a 22% decline over the past week according to InvestingPro data. Aziyo Biologics disclosed a year-over-year revenue decrease of approximately 7%, with fourth-quarter revenue totaling $5.5 million. This figure aligns with the FactSet consensus but falls short of Cantor Fitzgerald’s $6.3 million projection.
The revenue dip was attributed to a roughly 23% decline in SimpliDerm sales, which amounted to $2.3 million. However, the company saw a notable increase in its BioEnvelope product line, with sales rising about 18% year-over-year to $2.7 million. This growth was partially due to the strong initial sales of EluPro. In contrast, cardiovascular product sales experienced a downturn, decreasing by approximately 20% year-over-year to $0.5 million. InvestingPro data shows the company maintains a healthy gross margin of 42.4%, though it operates with moderate debt levels.
Despite the mixed performance in the fourth quarter, Cantor Fitzgerald expressed optimism for Aziyo Biologics’ prospects in 2025. The company has had a successful pilot launch with around 100 accounts contracted. Moreover, the imminent sales efforts by Boston Scientific (NYSE:BSX, NC) for EluPro are expected to contribute to further growth. Cantor Fitzgerald highlighted the competitive landscape, noting that Medtronic (NYSE:MDT, NC), Aziyo Biologics’ primary envelope competitor, generates about $200 million in annual revenue with a product they consider inferior. This comparison is used to establish a baseline for Aziyo Biologics’ potential revenue at the lower end of the market. With analyst targets ranging from $8 to $10, significantly above the current price, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports.
In other recent news, Elutia Inc. reported its fourth-quarter 2024 earnings, which fell short of analysts’ expectations on both earnings per share (EPS) and revenue. The company posted an EPS of -$0.26, missing the forecasted -$0.24, and reported revenue of $5.47 million, below the anticipated $6.3 million. Despite the disappointing earnings results, Elutia has launched its new product, EleuPro, and entered a strategic partnership with Boston Scientific, which could bolster future growth. Additionally, the company is focusing on increasing manufacturing capacity and gaining more Value Analysis Committee approvals to drive expansion. Analysts have noted that Elutia’s gross margin improved to 43% GAAP, up from 36% the previous year, reflecting some operational efficiencies. The company’s full-year 2024 revenue was $24.4 million, a slight decline of 1% year-over-year. Despite the earnings miss, Elutia’s strategic moves, such as the partnership with Boston Scientific, indicate a potential positive direction for the company. Meanwhile, analysts from firms like Cantor Fitzgerald and Lake Street Capital Markets continue to monitor the company’s performance and strategic developments closely.
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