There are lots of medical stocks, and during the pandemic, some of them gained profusely. However, some didn’t need a pandemic to make a profit. Alphatec Holdings is one of such stocks. It is operating as an innovative procedural-driven spine company. Alphatec has undergone a transformation due to its new management team and has succeded greatly, even though it took two years to complete the process.
There is a lot to recommend with this stock. Alphatec Holdings has given its product portfolio a major face-lift during its transformational period. As a result, 12 products were unveiled in 2019 alone, with each designed around specific spinal fusion approaches.
The company is offering SafeOP – its new nerve monitoring platform, which has a unique ability to monitor nerve health in real-time, not just its position, to improve reproducibility and safety. It works especially well with minimally invasive lateral procedures, as there is no direct visualization of the nerves in such procedures.
Alphatec Holdings’ Prone Transposes lateral procedure reflects a new approach to lateral fusions. It involves placing the patient in a prone position (stomach) instead of on their side. The company plans to launch its PTP at the North American Spinal Society annual meeting in November.
What do the analysts think?
According to Northland Capital’s analyst, Jason Wittes, the company has shifted away from lower-end distributors associated with lower profit and controversial Physician-Owned Distributors. The recent restructuring also included the sale of the stock’s international business.
These changes have enabled Alphatec Holdings to build strong R&D and sales teams. It also attracted Key Opinion Leaders. Wittes stated that, in combination with a highly differentiated product portfolio, Alphatec is now in a position for significant growth.
Wittes rated the stock as Buy and gave it a $9 price target. In the case of success, shares could surge forward by 100% in the next twelve months.
However, Alphatec Holding is trading at an affordable $4.45 per share. Other analysts also gave this stock a Strong Buy rating. But they set the average price target at $8.38. This implies 85% growth over the year.
