Lake Street starts AxoGen stock with Buy, sets $30 target

On Monday, Lake Street Capital Markets began covering AxoGen, Inc. (NASDAQ:AXGN), a company specializing in surgical solutions for peripheral nerve injuries, with a positive outlook. The firm initiated a Buy rating on AxoGen shares, accompanied by a price target of $30.00, signaling confidence in the company’s growth potential. The stock, currently trading at $17.37, has demonstrated remarkable momentum with a 124.61% return over the past year. According to InvestingPro, analysts maintain a strong bullish consensus with price targets ranging from $24 to $26.

Lake Street’s analysis highlighted AxoGen’s solid foundation for sustained growth between 15-20% and the company’s ability to leverage operations to improve profitability. The company’s recent performance supports this outlook, with revenue reaching $187.34 million and an impressive gross margin of 75.79%. AxoGen achieved its first positive adjusted EBITDA in 2024 and is expected to generate positive cash flow in 2025, despite significant investments back into the business.

The company’s total addressable market (TAM) currently stands at $5.6 billion, with additional growth opportunities as new indications are added. A key upcoming event is the anticipated Biologics License Application (BLA) approval in Q3, which analysts believe will act as a catalyst for the stock and further reinforce the company’s growth trajectory. InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 3.24, indicating strong liquidity to support its growth initiatives.

Lake Street also noted AxoGen’s financial and product profile, including its market exclusivity and lack of competition, which makes it an appealing acquisition target. The $30.00 price target is based on a 6.4x 2025 enterprise value to sales (EV/S) multiple.

The positive forecast for AxoGen reflects the company’s strategic positioning and expected milestones that could enhance shareholder value in the near term. With the initiation of coverage and a strong Buy rating, Lake Street Capital Markets has set a bullish tone for AxoGen’s stock performance moving forward.

In other recent news, AxoGen, Inc. has received positive attention from several analyst firms following its recent financial and strategic updates. The company’s fourth-quarter results were notably strong, with revenue reaching $49.4 million, a 15.1% increase year-over-year, surpassing previous estimates. AxoGen’s guidance for 2025 projects a revenue growth of 15-17%, translating to $215.4 million to $219.1 million, which is approximately $11 million above some analyst expectations. Canaccord Genuity and JMP Securities both raised their price targets for AxoGen to $26, maintaining a Buy and Market Perform rating, respectively, highlighting the company’s effective commercial execution and strategic growth plans.

Additionally, Cantor Fitzgerald reiterated an Overweight rating with a $24 price target, expressing optimism about AxoGen’s ambitious growth strategy and expanded market opportunity, now estimated at $5.6 billion. The company’s strategic plan aims to establish AxoGen as the standard of care in its segments, supported by a larger sales force and an evolving product portfolio. Meanwhile, Citizens JMP also maintained a Market Outperform rating and a $26 price target, noting the potential impact of the upcoming Biologics License Application (BLA) approval for the Avance Nerve Graft, which could provide a significant commercial advantage.

The BLA approval is expected to grant AxoGen market exclusivity for over 12 years, enhancing its competitive position. As the company awaits the FDA’s decision on this matter in September, the anticipation of broader commercial coverage and market penetration remains high. These developments underscore a period of strategic growth and potential for AxoGen, as reflected in the positive analyst outlooks and revised price targets.

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