Vik Chopra, an analyst from Wells Fargo, maintained the Buy rating on Alphatec Holdings (ATEC – Research Report). The associated price target is $26.00.
Vik Chopra has given his Buy rating due to a combination of factors surrounding Alphatec Holdings’ optimistic financial targets looking out to 2027. The company’s investor meeting revealed plans to achieve $1 billion in revenues, significantly higher than the consensus estimate of $963 million. Additionally, Chopra highlights the projected earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 18%, which surpasses consensus expectations of 14.5%, illustrating a substantial growth trajectory for the company’s profitability.
Furthermore, the targets suggest an impressive compound annual growth rate (CAGR) of approximately 20% from 2023 to 2027. Chopra is not taken aback by the billion-dollar revenue target, as it matches investor expectations. The ambitious EBITDA margin goals indicate a potential 2000 basis points expansion over the four-year period, based on the 2024 guidance, which would represent a 1400 basis points increase from the current plans. This level of margin expansion underscores Alphatec Holdings’ potential for improved efficiency and profitability, supporting Chopra’s optimistic Buy rating on the stock.
In another report released on March 15, Stifel Nicolaus also maintained a Buy rating on the stock with a $24.00 price target.
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Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ATEC in relation to earlier this year.
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Alphatec Holdings (ATEC) Company Description:
Alphatec Holdings, Inc. engages in the design, development, and marketing of spinal fusion technology products and solutions for the treatment of spinal disorders. It offers intra-operative information and neuromonitoring technologies, access systems, interbody implants, fixation systems, and various biologics offerings. The company was founded on March 4, 2005 and is headquartered in Carlsbad, CA.
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