MiMedx Group Receives a Buy from Needham

By George MacDonald

Needham analyst Michael Matson maintained a Buy rating on MiMedx Group (NASDAQ: MDXG) yesterday and set a price target of $13. The company’s shares closed yesterday at $8.32.

Matson wrote, “MDXG’s 4Q15 revenue was consistent with its 1/12/16 preannouncement while its EBITDA and EPS beat consensus. Management reiterated its 2016 revenue and adjusted EPS guidance. As expected, MDXG’s revenue growth slowed from 3Q15 given a more difficult comp. Despite this, MDXG delivered a significant improvement in its operating margin as operating expenses grew slower than revenue. We expect revenue growth to accelerate during 2016 as Y/Y growth comps get progressively easier and we see potential for upside to consensus estimates. MDXG shares are also trading at a discount to their small/mid-cap growth peers despite higher revenue growth.”

MiMedx Group has an analyst consensus of Strong Buy.

Based on MiMedx Group`s latest earnings report from September 30, the company posted quarterly revenue of $49.02M and quarterly net profit of $6.55M. In comparison, last year the company earned revenue of $39.57M and had a net profit of $3.83M.

Unlike Needham`s latest rating, based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is neutral on the stock. Most recently, in November 2015, Charles Robert Evans, a a Director at MDXG bought 10,000 shares for a total of $78,300.

According to TipRanks.com, Matson is ranked 0 out of 5 stars with an average return of -5.9% and a 38.5% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Zimmer Biomet Holdings.

MiMedx Group Inc is a developer, manufacturer and marketer of patent-protected regenerative biomaterial products and bioimplants processed from human amniotic membrane.