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Investing.com - Citizens JMP maintained its Market Outperform rating and $33.00 price target on Artivion Inc. (NYSE:AORT) ahead of the company’s second-quarter earnings report scheduled for August 7. The stock currently trades near its 52-week high of $32.94, having delivered a strong 14% return over the past year. According to InvestingPro data, analyst targets range from $30 to $35.
Artivion’s fiscal year 2025 sales guidance projects 11% growth (14% in constant currency), which implies significant acceleration in the second half of the year following first-quarter results that showed only 2% year-over-year growth (4% in constant currency) and second-quarter guidance of 11% year-over-year growth (13% in constant currency). InvestingPro analysis shows the company achieved nearly 6% revenue growth in the last twelve months, with a healthy gross margin of 64%.
The expected second-half revenue improvement will likely be driven by increasing AMDS sales and the processing of tissue backlog in the third quarter, according to Citizens JMP.
The AMDS product, which showed positive early progress in the first quarter, is launching under an HDE designation requiring institutional review board and value analysis committee approvals at the hospital level, potentially extending the implementation timeline.
AMDS is expected to contribute 100-200 basis points to Artivion’s fiscal year 2025 total revenue, with sales likely weighted toward the second half of 2025 due to the approval process requirements.
In other recent news, Artivion Inc. reported first-quarter earnings for 2025 that exceeded Wall Street expectations, posting $99 million in sales against a consensus estimate of $95 million. This growth was driven by the successful launch of the AMDS product and a recovery from previous supply issues. Analysts from JMP Securities and Stifel have maintained positive ratings on Artivion, with price targets set at $33.00 and $30.00, respectively, citing strong performance in the company’s aortic stent graft business. Additionally, Canaccord Genuity initiated coverage with a buy rating and a $35.00 price target, highlighting strategic investments in aortic arch repair.
Artivion also announced a private agreement to exchange approximately $95 million in convertible notes for common stock, with the transaction expected to issue around 4.1 million shares. Shareholders recently approved executive compensation and selected Ernst & Young LLP as the independent accounting firm for the fiscal year 2025. The company continues to focus on expanding its product offerings and addressing past operational challenges. These developments indicate a period of strategic growth and adaptation for Artivion.
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