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On Thursday, H.C. Wainwright analyst Yi Chen increased the price target on Sanara MedTech (NASDAQ:SMTI) to $53.00, up from the previous $51.00, while maintaining a Buy rating on the stock. According to InvestingPro data, this target represents significant upside potential from the current trading price of $31.30. This adjustment came in response to Sanara MedTech’s first-quarter financial results for 2025, which were disclosed on Wednesday.
The company reported net revenue of $23.4 million, marking a 26% year-over-year (YoY) growth and surpassing the analyst’s forecast of $22.3 million. This growth aligns with the company’s impressive 34.65% revenue increase over the last twelve months, as reported by InvestingPro. However, the net loss for the quarter was slightly higher than expected at $3.5 million, or ($0.41) per share, compared to the projected loss of $2.8 million, reflecting the company’s current unprofitable status.
Sanara MedTech experienced a notable increase in demand for its soft tissue repair products, particularly CellerateRX Surgical Activated Collagen. This led to a revenue of $20.5 million for this segment, a 28% rise YoY, attributed to deeper market penetration in existing medical facilities and expansion into new ones. Revenue from bone fusion products also saw an 18% increase YoY, reaching $2.9 million.
Chen highlighted the potential for continued growth in the Sanara Surgical segment as the company expands its team of regional sales managers, increases its number of territories, and grows its distribution partners. Looking forward, the analyst’s revenue projections for the next 12 months, spanning from the second quarter of 2025 to the first quarter of 2026, underpin the revised price target of $53. The firm reaffirmed its confidence in the stock with a reiterated Buy rating. InvestingPro analysis shows the company maintains an impressive 91.17% gross profit margin and has received an overall Financial Health rating of "GREAT." Subscribers can access 6 additional ProTips and a comprehensive Pro Research Report for deeper insights into SMTI’s valuation and growth prospects.
In other recent news, Sanara Medtech Inc. reported its Q1 2025 earnings, revealing a net loss of $3.5 million, or $0.41 per diluted share, which did not meet the forecasted EPS of -$0.265. The company’s revenue for the quarter was $23.4 million, falling short of the $24.1 million forecast. Despite these misses, Sanara Medtech’s revenue grew by 26% year-over-year, driven by strong sales in soft tissue repair and bone fusion products. Gross margin improved significantly, increasing by 240 basis points to 92%. Additionally, the company’s adjusted EBITDA saw a 111% increase, reaching $700,000. Analyst firms have not provided any recent upgrades or downgrades for the company. CEO Ron Nixon expressed optimism about future growth opportunities, despite the earnings miss. The company remains focused on expanding its distributor network and increasing penetration in existing healthcare facilities.
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