Alphatec Hlds (ATEC) Stock Forecast & Price Target

Alphatec Holdings is well-positioned for future growth, highlighted by its strong performance in surgical revenue and increase in the active surgeon base. The company's adjusted gross margin and operating margin showed significant improvement, leading to a positive outlook for free cash flow. The management team's confidence in maintaining their full-year adjusted EBITDA guidance showcases the company's potential for strong operating leverage and margin expansion. In addition, the company's strong pipeline for its Valence product and expectations for premium ASPs in deformity procedures provide further confidence in its future growth prospects.

Alphatec Holdings is facing headwinds in their EOS imaging business, resulting in a topline miss and lowered revenue guidance. While the core surgery business is performing well, the company's operations have been impacted by poor sales execution and missed hardware sales, leading to a lower contribution from EOS. Despite this, management remains confident in the company's ability to maintain profitability and has initiated improvements in the EOS business. However, the current weakness in the company's stock price is overdone, and the fundamentals of the business remain strong, making it an opportune time to buy for long-term investors. Overall, I would recommend keeping an eye on Alphatec Holdings and considering adding it to your portfolio at a lower price point.