Stifel starts Alphatec at buy; PT $13

Alphatec Spine Logo

Stifel initiated coverage of Alphatec Holdings (NASDAQ:ATEC) with a “buy” rating and $13 price target. The stock closed at $9.88 on Oct. 19.

Alphatec engages in design, development, and marketing of spinal fusion technology products and solutions for the treatment of spinal disorders.

Analyst Mathew Blackman writes that since 2017, with the appointment of Pat Miles as CEO, the company has found its footing, implementing multiple growth-accelerating initiatives that are now manifesting in tangible, top-line momentum.

“One needs to look no further than the third quarter of 2020 for evidence of this significant change, when Alphatec posted 40% revenue growth,” Mr. Blackman said, adding that “we see a long runway for momentum, driven by portfolio innovation and sales channel optimization/expansion.”

Mr. Blackman said a recent equity raise should put to rest a “persisting balance sheet overhang, with investor focus likely to now shift to the well-above peer growth outlook, opportunities for revenue upside and further multiple expansion.”

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