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Friday, September 4, 2020

Alphatec initiated at outperform on company’s turnaround story

Initiated with a Outperform at Cowen, Alphatec Holdings (ATEC -1.9%) has recorded an impressive 15.6% in the past one month as against a 5.9% gain in the broader index (NYSEARCA:XLK); PT of $12, indicating upside of 110.9% from current levels.

Analyst Joshua Jennings notes that the company’s turnaround story is de-risked but still in the early innings.

He further adds that the company has made major progress in revamping its product portfolio (new product revenue contribution stood at 61% vs. nil in 2Q17), distribution network, and surgeon customer base (revenue from top surgeons +51% in Q2).

Percentage of sales driven by strategic channel stands at 91% vs. 56% in 2Q17.

Upcoming share catalysts and revenue drivers include the launch of the company’s proprietary prone transpsoas technique, which should strengthen investor sentiment, says Jennings.

Read more: Earnings Call Presentation

https://seekingalpha.com/news/3611852-alphatec-initiated-outperform-on-companys-turnaround-story

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