Paragon 28 (FNA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Craig Bijou from Bank of America Securities reiterated a Buy rating on the stock and has a $15.00 price target.
Craig Bijou has given his Buy rating due to a combination of factors surrounding the impressive performance and strategic growth initiatives of Paragon 28. The company demonstrated a notable 19% year-over-year revenue growth, which aligns with the higher end of their pre-announced range. This growth has been particularly robust internationally, with a 43% increase when excluding foreign exchange impacts, and a solid 15.5% growth in the U.S. market. Furthermore, despite recent concerns raised by a competitor, Paragon 28’s broad product portfolio across the foot and ankle category shields it from specific product vulnerabilities. The company’s proactive investment in its commercial team is aimed at accelerating growth, which, while delaying EBITDA profitability, is anticipated to yield positive returns in the near term.
Bijou’s report also suggests that the company’s strategic investments in new talent are wisely timed to capitalize on current market opportunities and align with the company’s culture and growth trajectory. Despite the initial impact on EBITDA due to these investments, the report anticipates a sequential improvement in profitability throughout 2024. Paragon 28’s reiteration of its FY24 revenue guidance, despite the recent CFO resignation, is seen as a conservative yet realistic target that seems attainable given the company’s strong first quarter performance. This guidance, coupled with the company’s new product launches and expanded commercial team, positions Paragon 28 for continued top-line growth, supporting the analyst’s positive outlook.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FNA in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Paragon 28 (FNA) Company Description:
Paragon 28 Inc is a medical devices company that develops, distributes, and sells medical devices in the foot and ankle segment of the orthopedic implant marketplace. Its products include plates and plating systems, screws, staples, and nails aimed to address all major foot and ankle procedures including ankle, charcot, fracture fixation, hallux valgus, hammertoe, and flatfoot.
Read More on FNA:
