Needham Releases a Buy Rating on MiMedx Group

By Carrie Williams

In a report released today, Michael Matson from Needham reiterated a Buy rating on MiMedx Group (NASDAQ: MDXG), with a price target of $12. The company’s shares opened today at $8.29.

Matson commented:

“MDXG’s 4Q16 revenue was below its 1/9/17 preannouncement (due to increased sales returns and allowances reserves as it transitions from using AvKare) while its adjusted EBITDA beat consensus and adjusted EPS missed consensus. Management reiterated its 2017 guidance. Receivables were 86 days at the end of 4Q16, which is down from 89 days at the end of 3Q16; MDXG continues to add staff to improve collections. While MDXG’s revenue growth reached 35% in 4Q16 and 1Q17 revenue guidance implies 30-36% growth, guidance implies only 23-25% for the full year which strikes us as conservative. With the potential for meaningful upside to consensus and shares at a steep discount to peers (2017E EV/sales of 2.7x vs. small/ mid-cap growth peers at 4.7x), we reiterate our Strong Buy rating.”

According to, Matson is a 5-star analyst with an average return of 9.2% and a 62.8% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

MiMedx Group has an analyst consensus of Hold, with a price target consensus of $10.50.

MiMedx Group’s market cap is currently $907.9M and has a P/E ratio of 46.06. The company has a book value ratio of 7.3644.

Based on the recent corporate insider activity of 24 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 MDXG in relation to earlier this year. Most recently, in May 2016, Parker Petit, the Chairman & CEO of MDXG bought 20,000 shares for a total of $139,800.

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MiMedx Group, Inc. engages in the designing, manufacturing, and marketing of regenerative biomaterials products and tissue processing services for the wound care, surgical, sports medicine, ophthalmic and dental market categories. Its allograft product families include dHACM family with AmnioFix, EpiFix and EpiBurn brands; Amniotic Fluid family with OrthoFlo brand; Umbilical family with EpiCord™ and AmnioCord brands; Placental Collagen family with CollaFix and AmnioFill brands; Bone family with Physio brand; and Skin family with AlloBurn brand. The company was founded on July 30, 1985 and is headquartered in Marietta, GA.