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TELA Bio (NASDAQ:TELA) Inc. stock has tumbled to a 52-week low, touching a price level of just $1.9, as the company faces a tumultuous period marked by investor concerns and broader market headwinds. Despite challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.62 and impressive revenue growth of 29.34% over the last twelve months. This latest price point represents a stark contrast to the stock’s performance over the past year, with TELA Bio experiencing a significant decline of -71.12% in its year-over-year change. The steep drop reflects a challenging phase for the medical technology company, as it navigates through a complex healthcare landscape and competitive pressures. With a market capitalization of $61.84 million and a robust gross profit margin of 68.86%, InvestingPro analysis suggests the stock may be undervalued at current levels. Discover detailed valuation metrics and 5 additional ProTips with an InvestingPro subscription, including comprehensive analysis in the Pro Research Report available for this stock.
In other recent news, TELA Bio, Inc. reported fourth-quarter revenue of $17.6 million, which was below the consensus estimate of $23.17 million, despite a 4% year-over-year increase. Adjusted earnings per share were recorded at -$0.23, slightly missing the analysts’ projection of -$0.22. For the full year 2024, the company saw a 19% increase in revenue to $69.3 million, driven by strong demand for its OviTex and OviTex PRS Reinforced Tissue Matrix products. Looking ahead, TELA Bio provided guidance for first-quarter 2025 revenue between $17.0 million and $18.0 million, indicating growth of 2% to 8% year-over-year.
The company’s recent challenges include significant sales force turnover, which has been attributed to aggressive recruitment by competitors. This issue contributed to a revenue shortfall and weak guidance for the upcoming quarter. Canaccord Genuity and Citizens JMP both adjusted their price targets for TELA Bio to $7.00, maintaining Buy and Market Outperform ratings, respectively, while Piper Sandler downgraded the stock to Neutral and reduced the price target to $2.00. Analysts have noted the competitive pressures and the company’s efforts to stabilize its sales organization.
Despite these hurdles, TELA Bio’s management remains optimistic about its financial position and growth prospects, with plans to launch new products in 2025. The company is also preparing for a PRS breast reconstruction Investigational Device Exemption trial, which could further strengthen its market position. Analysts have highlighted TELA Bio’s unique assets and potential for recovery, emphasizing the ongoing industry shift towards biologic materials.
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