Needham maintains Buy rating on Alphatec stock citing durable revenue growth

EditorRachael Rajan
Published 13/01/2025, 16:38
Needham maintains Buy rating on Alphatec stock citing durable revenue growth
ATEC
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Monday - Needham analysts have maintained a Buy rating on Alphatec Holdings (NASDAQ:ATEC) stock.

The revision follows Alphatec's preannouncement of fourth-quarter 2024 revenue that exceeded consensus estimates and the company's 2025 revenue guidance, which aligns with market expectations.

Alphatec, a medical technology company, demonstrated a robust performance in the fourth quarter of 2024, with significant growth across its product lines. The company's Surgical segment continued to show strong results, and the EOS imaging system experienced a positive shift from the previous quarter. This broad-based strength underpins the analyst's confidence in the company's trajectory.

In addition to the revenue growth, Alphatec's management anticipates positive free cash flow in 2025, a key indicator of the company's financial health and efficiency. This expectation has been factored into Needham's updated model, which now incorporates Alphatec's preliminary fourth-quarter 2024 results, the revenue outlook for 2025, and the commentary on free cash flow.

The revised price target of $16.00, up from the previous $13.00, reflects a forward-looking valuation based on 2026 sales projections. Needham's analysis suggests that Alphatec's consistent revenue growth and progress toward profitability justify the maintained Buy rating and the increased price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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