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.
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