Canaccord Genuity analyst Caitlin Cronin has maintained their bullish stance on FNA stock, giving a Buy rating today.
Caitlin Cronin’s rating is based on a multifaceted analysis of Paragon 28’s recent performance and future prospects. Cronin highlights the company’s solid top-line growth of 17.4% year-over-year, which is at the upper end of preliminary estimates. Despite facing tougher comparisons and one less selling day, Paragon 28 managed to achieve this growth, indicating a strong market presence. However, Cronin notes that profitability was not as strong, with increased operational expenses leading to a wider adjusted EBITDA loss compared to previous quarters. Even so, the company’s guidance remains unchanged, which Cronin interprets as a conservative stance by management, especially as it is still early in the fiscal year. Paragon 28 has also launched several new products and ended the quarter with a record surgeon customer base, which suggests potential for continued growth.
The foundation for a Buy rating is further reinforced by Paragon 28’s robust pipeline of more than 25 products in development, most of which are expected to launch within the next 24 months. This is anticipated to drive double-digit top-line growth over the next five years. Cronin expects new product launches and an increase in sales personnel, supported by a strong medical education system, to accelerate growth into 2024 and beyond. The company’s focus on the fastest-growing segment of the orthopedic market, coupled with its plans to leverage its profit and loss statement and secure non-dilutive financing, positions it well for taking market share and advancing toward profitability. These factors collectively form the basis for Cronin’s optimistic Buy rating for Paragon 28.
In another report released today, Needham also reiterated a Buy rating on the stock with a $14.00 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.
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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.
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