On Tuesday, Cantor Fitzgerald adjusted its price target for Sanara MedTech (NASDAQ:SMTI), a company specializing in wound and skin care products. The firm's analyst set a new 12-month price target of $44, down from the previous $49, while maintaining an Overweight rating on the stock.
Sanara MedTech recently announced its fourth-quarter results, recording a record revenue of $17.7 million, which surpassed Cantor Fitzgerald's estimate of $16.5 million. This revenue indicates a year-over-year increase of approximately 15.5%. Over the course of the 12 months ending in December 2023, Sanara MedTech's products were available in over 1,000 facilities across 34 states, as well as the District of Columbia.
Furthermore, as of December 31, 2023, Sanara MedTech's products had been contracted or approved for sale in more than 3,000 hospitals and ambulatory surgery centers. The company's recent product launches, including BIASURGE, have reportedly had a strong start and are expected to contribute to growth in 2024. This is in addition to the expected positive impact from ALLOCYTE, another of the company's products, especially following the resolution of prior supply issues.
InvestingPro Insights
Sanara MedTech's impressive gross profit margin of 86.53% for the last twelve months as of Q3 2023 is a testament to the company's ability to maintain profitability on its products, which aligns with Cantor Fitzgerald's positive outlook on the stock. Additionally, the company's stock price has shown resilience, trading at 72.24% of its 52-week high, indicating a level of investor confidence in the face of market volatility.
InvestingPro Tips highlight that Sanara MedTech operates with a moderate level of debt, which may provide it with financial flexibility to continue its growth trajectory. However, it is important to note that the company is not profitable over the last twelve months, which is reflected in its negative P/E ratio of -36.97. This could be an area for potential investors to watch, as the company aims to translate its revenue growth into bottom-line profitability.
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