Canaccord has revised its price target for AxoGen (AXGN, Financial), lowering it from $26 to $24, while maintaining a Buy rating on the stock. This adjustment comes after the firm's analysis of AxoGen's first-quarter 2025 results and the subsequent 10-Q filing. Despite the new price target, the company reaffirmed its revenue and gross margin forecasts for fiscal year 2025 during its Q1 2025 earnings call.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Axogen Inc (AXGN, Financial) is $24.38 with a high estimate of $30.00 and a low estimate of $21.00. The average target implies an upside of 114.00% from the current price of $11.39. More detailed estimate data can be found on the Axogen Inc (AXGN) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Axogen Inc's (AXGN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Axogen Inc (AXGN, Financial) in one year is $13.88, suggesting a upside of 21.86% from the current price of $11.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Axogen Inc (AXGN) Summary page.
AXGN Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Axogen Inc (AXGN, Financial) reported a 17.4% increase in revenue for the first quarter of 2025, reaching $48.6 million, driven by double-digit growth across all target markets.
- The company successfully increased average account productivity by 24% in high potential accounts, surpassing their target of 21%.
- Axogen Inc (AXGN) is on track with its biologics license application (BLA) for advanced nerve graft, expecting approval in September, which will secure 12 years of market exclusivity.
- The company has made strategic hires across sales, marketing, and market access teams to strengthen its commercial infrastructure.
- Axogen Inc (AXGN) continues to see strong external validation with eight new peer-reviewed publications citing clinical use or discussion of its products.
Negative Points
- Gross margin decreased to 71.9% from 78.8% in the same period last year, impacted by higher costs at the new facility and increased inventory reserves.
- The company is running behind its original hiring and training plan for expanding the breast re-sensation sales team, although it expects to be on track by the end of the second quarter.
- Operating expenses decreased slightly, but the company still reported a net loss of $3.8 million for the quarter.
- The BLA process limits Axogen Inc (AXGN)'s ability to make significant process improvements until after approval, affecting potential gross margin improvements.
- There is a risk of disruption in hospital access or product availability due to potential PNT committee approvals required for the biologics designation.
