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Investing.com - Needham raised its price target on Establishment Labs Inc. (NASDAQ:ESTA) to $70.00 from $48.00 on Thursday, while maintaining a Buy rating on the medical technology company. The stock currently trades at $60.51, just 0.97% below its 52-week high of $62.25, after an impressive 83.25% price return over the past six months.
The price target increase follows Establishment Labs’ third-quarter 2025 results, which showed revenue and adjusted EBITDA exceeding consensus expectations. Management now anticipates 2025 revenue to surpass the mid-point of its previous guidance range. According to InvestingPro data, the company’s revenue is forecast to grow by 26% in FY2025, building on its 17.22% growth over the last twelve months.
Revenue growth accelerated to 34% in the third quarter of 2025, up from 16% in the second quarter. U.S. sales grew approximately 16% sequentially and beat consensus estimates.
The company’s gross margin improved by 620 basis points year-over-year, while its adjusted EBITDA margin increased by 1,960 basis points compared to the same period last year, turning positive for the first time.
Establishment Labs expects its adjusted EBITDA margin to remain positive in the fourth quarter of 2025 and continue increasing in subsequent periods, according to Needham’s research note.
In other recent news, Establishment Labs Holdings Inc . reported a robust Q3 2025 performance, exceeding both revenue and earnings expectations. The company achieved a revenue of $53.8 million, reflecting a 33.8% year-over-year increase and surpassing consensus estimates by $1.6 million. U.S. sales contributed $11.9 million, also beating the anticipated $11.2 million. Establishment Labs posted an earnings per share (EPS) of -$0.38, outperforming the forecasted -$0.51, marking a positive surprise of 25.49%. BTIG responded by raising the company’s stock price target from $62 to $70, maintaining a Buy rating due to the strong quarterly results and a positive outlook. These developments indicate a promising trajectory for Establishment Labs, as noted by BTIG.
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