ZIMV - Alphatec Holdings: Taking Market Share Amid Strong Execution - Buy
2024-02-12 04:21:15 ET
Summary
- In recent years, Alphatec Holdings has outperformed expectations on a regular basis and successfully taken share in the $8 billion U.S. spinal disorder treatment market.
- The company is capitalizing on M&A-related disruptions at key competitors, which has created opportunities for Alphatec to grab additional market share.
- Persistent cash usage has resulted in substantial debt accumulation and material dilution for common shareholders, but the company appears adequately financed to reach cash flow breakeven by 2025.
- While I consider ATEC a very promising growth investment, the easy money appears to have been made over the past three months with shares up 90% from recent lows.
- Reiterating "Buy" rating with a twelve-month price target of $22, based on 5x projected 2024 sales. While I wouldn't chase the shares following the recent rally, I would consider using any major weakness to initiate or add to existing positions.
Note:
I have discussed Alphatec Holdings, Inc. ( ATEC ) previously, so investors should view this article as an update to my earlier coverage of the company.
Introduction / Discussion Of Past Performance
Alphatec Holdings, Inc. or "ATEC" is a medical technology company that designs, develops, and advances technologies for the surgical treatment of spinal disorders....
Alphatec Holdings: Taking Market Share Amid Strong Execution - Buy