Alphatec Holdings: Taking Market Share Amid Strong Execution - Buy

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.
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »

Worker of medicine treats the human spine .

Natali_Mis

Note:

I have discussed Alphatec Holdings, Inc. (NASDAQ: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

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