Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

MedTech Bioventus' Stabilization Sparks Analyst Confidence, Earns Upgrade And Price Target Boost

Published 07/12/2023, 20:35
Updated 07/12/2023, 21:40
© Reuters.  MedTech Bioventus' Stabilization Sparks Analyst Confidence, Earns Upgrade And Price Target Boost
BTAI
-

Benzinga - by Vandana Singh, Benzinga Editor.

Canaccord Genuity has upgraded Biomedical Devices and Services company Bioventus Inc (NASDAQ: BVS), highlighting greater insight into the progress of the turnaround and plans for future investment and growth.

The analyst notes that the business is now stabilized, and management is discussing strategic investments in the existing business to drive future growth.

Management expects that the worst of challenges are likely behind the company.

Canaccord indicates that the management anticipates that the continual investments made in its Exogen business during the past few years will enhance the quality of the product.

They foresee that the effectiveness of the sales force will begin to yield advantages in 2024, leading to a projected low-single-digit to mid-single-digit growth in product sales.

Furthermore, Canaccord acknowledges that the company will likely need to resolve a potential issue with interest coverage covenants (a late 2024 issue pending) and find a permanent CEO.

The valuation fully reflects these challenges, with the stock trading at 1.4x 2024 EV/ Sales.

Given this low valuation and high probability of continued improvement, Canaccord upgraded from Hold to Buy and increased the price target to $7 from $3.66.

BVS's primary focus in 2023 revolves around enhancing EBITDA and cash flows.

Moving into 2024, the company aims to bolster revenue growth while maintaining operational margins.

By 2025 and 2026, the goal is to progressively expand margins, aiming to achieve an EBITDA margin exceeding 20%.

Price Action: BVS shares are up 16.60% at $5.27 on the last check Thursday.

Latest Ratings for BVS

DateFirmActionFromTo
Mar 2022Morgan StanleyMaintainsOverweight
Nov 2021Morgan StanleyReinstatesOverweight
Jul 2021Goldman SachsDowngradesBuyNeutral
View More Analyst Ratings for BVS

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.