Cantor Fitzgerald Reiterates Overweight Rating on SeaSpine Holdings (SPNE) Following Q1 Report, Sees "Likely Share Price Appreciation"

Cantor Fitzgerald analyst Ross Osborn reiterated an Overweight rating and $21.00 price target on SeaSpine Holdings (NASDAQ: SPNE), following the company's Q1 report.

The analyst comments: "We reiterate our Overweight rating and 12-month price target of $21 on SeaSpine Holdings (SPNE) following the company reporting above-consensus 1Q22 revenue and raising its CY22 guidance. Specifically, SPNE reported 1Q22 revenue of $50.7 million (Cantor $49.2 million / FactSet Consensus $49.0 million), implying year-over-year growth of 21% driven by U.S. Spinal Implant and Enabling Technologies growth of 31%. Importantly, SPNE noted an improving operating environment starting in February with hospital staffing and operating-room capacity headwinds subsiding, resulting in strong spine procedure volumes. The company noted that this positive trend continued through April and expects the operating environment to continue to improve for the balance of the year. As a result, SPNE increased its CY22 revenue guidance from the prior range of $226 to $230 million to the revised range of $231 to $235 million (Pre-Call FactSet Consensus: $228 million). Based on SPNE's strong 1Q despite a weak January, the company's positive outlook for the balance of the year and a core business that is set to be bolstered by new, faster-growing and higher-margin products, we continue to believe that CY22 will prove to be a productive year for SPNE, and that this will likely be reflected in potential share price appreciation. Accordingly, we reiterate our Overweight rating and encourage investors to acquire SPNE's shares at what we believe is currently an attractive valuation."

For an analyst ratings summary and ratings history on SeaSpine Holdings click here. For more ratings news on SeaSpine Holdings click here.

Shares of SeaSpine Holdings closed at $9.74 yesterday.

By Vlad Schepkov

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