Lake Street initiates AngioDynamics stock with Buy rating on strategic realignment

Investing.com - Lake Street Capital Markets initiated coverage on AngioDynamics (NASDAQ:ANGO) with a Buy rating and a price target of $24.00 on Wednesday. The target represents significant upside potential from the current price of $8.65, with analyst consensus targets ranging between $16-17.

The research firm highlighted that AngioDynamics’ strategic realignment is being overlooked by the market, with shares currently trading at approximately 1x FY27 EV/S despite improving fundamentals. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 2.21.

Lake Street noted that fiscal year 2025 marked the company’s first AEBITDA-positive year under its reorganization, with FY26 expected to generate positive cash flow, and the Med Tech business projected to exceed 50% of sales in FY27. While InvestingPro analysis shows the company is currently operating at a loss, with additional exclusive insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.

The firm pointed to AngioDynamics’ Med Tech growth profile, which achieved 20% year-over-year growth in FY25, as an underappreciated aspect of the company’s business in premium-multiple verticals.

Lake Street suggested that AngioDynamics shares should be valued more in line with higher-multiple MedTech companies and transactions, specifically referencing the NARI/SYK acquisition at 7x forward revenue as a comparable valuation benchmark.

In other recent news, AngioDynamics reported impressive fourth-quarter fiscal 2025 results, surpassing earnings and revenue forecasts. The company achieved an earnings per share (EPS) of -$0.03, exceeding the expected -$0.12, and reported revenue of $80.2 million, outperforming the anticipated $74.27 million. This performance marks a 12.7% increase in revenue year-over-year, driven by strong results in the MedTech segment. Additionally, Canaccord Genuity upgraded AngioDynamics’ stock price target from $15 to $17, maintaining a Buy rating, citing the company’s well-executed quarter and growth in its Med-Tech business.

For fiscal year 2026, AngioDynamics projects net sales between $305 million and $310 million, with MedTech revenue expected to grow by 12-15%. The company also aims to be cash flow positive despite anticipated margin impacts from tariffs. Canaccord Genuity identified mechanical thrombectomy and Auryon as key growth drivers, while NanoKnife is expected to gain momentum with a new CPT code effective January 1, 2026. Despite some concerns about the low sequential growth of the AlphaVac product, AngioDynamics is investing in commercial resources to boost its performance.

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