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On Wednesday, Cantor Fitzgerald reiterated its Overweight rating on Sanara MedTech shares, maintaining a 12-month price target of $46.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $46 to $50. The firm’s analyst praised the company for its fourth-quarter performance, which surpassed expectations with revenues of $26.3 million. This figure represents a year-over-year increase of approximately 49%, fueled by robust sales in soft tissue repair products, building on the company’s impressive 90.16% gross profit margin.
Sanara MedTech, trading on NASDAQ under the ticker SMTI with a market capitalization of $273 million, reported these impressive fourth-quarter results that exceeded both Cantor Fitzgerald’s projection of $22.4 million and the FactSet consensus of $23.1 million. The company’s success was partly due to a surge in BIASURGE sales, which included around $1.8 million in revenue that can be attributed to supply chain disruptions. These disruptions were a result of shortages in IV fluids and saline solutions following Hurricane Helene. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 2.23, indicating solid liquidity to manage such supply chain challenges.
The analyst highlighted that the substantial revenue growth was driven by increased demand for the company’s soft tissue repair products. Despite the challenges posed by Hurricane Helene, Sanara MedTech managed to navigate the supply chain issues effectively, contributing to their robust quarterly performance.
Looking ahead to the year 2025, Cantor Fitzgerald expressed a positive outlook for Sanara MedTech. The firm anticipates the company will continue to outperform expectations, bolstered by the accelerating growth of its soft tissue business. Additionally, the introduction of new products, Tissue Health Plus (THP) and ChemoMouthpiece, are expected to further enhance the company’s market position and financial performance in the upcoming year.
In conclusion, Cantor Fitzgerald reaffirmed its confidence in Sanara MedTech’s prospects, reiterating the Overweight rating on the company’s stock. The firm’s endorsement reflects its belief in the company’s potential for continued growth and success in the healthcare market.
In other recent news, Sanara Medtech Inc. reported a strong financial performance for the full year 2024, with net revenue reaching $86.7 million, marking a 33% increase compared to the previous year. The company saw significant growth in its core product lines, with soft tissue product sales increasing by 39% to $76.1 million and bone fusion product sales rising by 6% to $10.5 million. Sanara Medtech also formed a strategic alliance with BioMimetic Innovations and received FDA Breakthrough Device Designation for a new product. The company plans to invest significantly in its Tissue Health Plus (THP) initiative in 2025, with an anticipated investment of $7.5 to $10 million in the first half of the year. The strategic relationship with BioMimetic Innovations includes an exclusive license and distribution agreement, as well as a minority investment. Analysts from Cantor Fitzgerald have shown interest in the company’s progress, particularly in the Tissue Health Plus segment and its upcoming pilot launch. Sanara Medtech’s adjusted EBITDA improved to $2.7 million, reflecting better operational efficiency.
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