Intel stock spikes after report of possible US government stake
On Tuesday, Leerink Partners analyst Mike Kratky raised the price target on AxoGen, Inc. (NASDAQ:AXGN) to $25.00, up from the previous target of $18.00, while reiterating an Outperform rating on the company’s stock. The adjustment follows the release of AxoGen’s fourth-quarter earnings for the fiscal year 2024. AxoGen reported sales of $49.4 million, which was a 4% increase compared to consensus estimates, and a gross margin (GM) of 76.1%, slightly missing the consensus expectation of 76.5%. According to InvestingPro data, the company has maintained a strong gross profit margin of 78.75% over the last twelve months, demonstrating consistent operational efficiency.
AxoGen also provided its fiscal year 2025 sales growth guidance, projecting an increase of 15-17% year-over-year, which would translate to sales of between $215 million and $219 million. This forecast exceeds the consensus estimate of $211 million. The company’s management highlighted several strategic priorities expected to drive a compound annual growth rate (CAGR) of 15-20% over the next four years. These strategies include enhanced market development efforts and expansion of the commercial footprint. InvestingPro analysis reveals the company has already demonstrated strong growth momentum with an 18.79% revenue increase over the last twelve months. Get access to 12 additional ProTips and comprehensive financial metrics with InvestingPro.
The positive outlook, along with additional commentary shared during the earnings call, has contributed to AxoGen’s stock outperformance today. The company’s expanded total addressable market (TAM) estimate to over $5 billion and potential international expansion efforts were also well-received by investors.
Management is set to provide more details on its strategic priorities during its Investor Day on March 4, 2025. Despite the focus of investors likely remaining on the anticipated Biologics License Application (BLA) approval expected in September 2025, which Kratky views as largely de-risked, Leerink sees a favorable risk/reward setup for AxoGen’s stock. The firm’s optimism is grounded in the encouraging commercial commentary, strong growth trends in the company’s end markets, and a series of favorable upcoming catalysts.
In other recent news, AxoGen reported impressive fourth-quarter earnings, with revenue reaching $49.4 million, exceeding both Cantor Fitzgerald’s and FactSet’s estimates. This marks a 15.1% increase from the same quarter last year. The company also reported adjusted earnings per share of $0.07, surpassing the analyst estimate of $0.03. AxoGen’s gross margin improved to 76.1% in the fourth quarter, up from 74.6% the previous year, and the company achieved a net income of $0.4 million, compared to a net loss in the year-ago quarter.
Looking forward, AxoGen has set a revenue guidance for 2025 between $215.4 million and $219.1 million, which indicates a year-over-year growth of 15% to 17%. Cantor Fitzgerald responded to these developments by raising AxoGen’s stock price target from $22.00 to $24.00 and maintaining an Overweight rating. Additionally, the FDA has accepted AxoGen’s Biologics License Application for Avance Nerve Graft, with a PDUFA goal date set for September 2025. The company anticipates approval around that time. These developments underscore AxoGen’s strategic efforts to expand its commercial operations and capitalize on recurring revenue opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.