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Investing.com - Cantor Fitzgerald raised its price target on Organogenesis Holdings (NASDAQ:ORGO) to $9.00 from $7.00 on Friday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with shares currently trading at $4.52.
The price target increase follows Organogenesis reporting its second-quarter 2025 operating results, which showed total revenue of $100.8 million, representing a year-over-year decline of approximately 23%. The decline was primarily driven by a roughly 25% decrease in advanced wound care products to $92.7 million. Despite recent challenges, the stock has demonstrated strong momentum, posting a 72.5% return over the past year and a 41.25% gain year-to-date.
Despite the revenue decline, Cantor Fitzgerald expects Organogenesis to see material revenue acceleration in the second half of 2025, driven by the roll-out of higher-priced products. The company has lowered the top-end of its 2025 revenue guidance. InvestingPro analysis reveals strong financial health indicators, including a robust current ratio of 4.12 and positive revenue growth of 5.35% over the last twelve months. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis with an InvestingPro subscription.
Cantor Fitzgerald expressed optimism about Organogenesis’ fiscal year 2026 prospects, citing the proposed physician fee schedule that could allow for meaningful price upside for the company, along with a less competitive operating environment.
The research firm believes that earnings estimates for Organogenesis will increase and that the company should benefit from multiple expansion given the improved operating environment.
In other recent news, Organogenesis Holdings Inc. reported its second-quarter earnings for 2025. The company posted a loss per share of $0.10, which was larger than the anticipated loss of $0.05. On a positive note, Organogenesis’s revenue reached $149.2 million, significantly surpassing the expected $103.4 million. These earnings results highlight a mixed performance, with a notable revenue beat despite the earnings per share falling short of forecasts. The company’s shares remained stable in aftermarket trading. Analysts will likely keep a close eye on Organogenesis following these developments. Investors may find the revenue performance particularly encouraging, given the substantial difference from expectations. The earnings report represents the latest in a series of financial updates from the company.
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