BTIG Upgrades Treace Medical Concepts Inc (TMCI) to Buy

BTIG analyst Ryan Zimmerman upgraded Treace Medical Concepts Inc (NASDAQ: TMCI) from Neutral to Buy with a price target of $16.00.

The analyst comments "We upgrade Treace Medical (TMCI) to Buy and establish a $16 PT from Neutral. We had moved to Neutral on TMCI shares in May 2024 (here) after a disappointing guide following 1Q24 results where competition was disrupting TMCI's growth. Mgmt. had pivoted away from offering solely Lapiplasty, TMCI's leading technology, in bunion surgery in order to capture a broader share of the surgical bunion market. With that in mind, we think the dynamics around TMCI shares have improved for a number of reasons. Mgmt. learned a tough lesson at that time around guidance and have since approached guidance to the Street in a far more conservative manner which sets the company up to beat and raise. This alone isn't sufficient enough to compel us to upgrade even at a reasonable valuation though. What does become compelling is the product cadence that underpins TMCI's top-line growth (which sets up the beat and raise story), a significantly more favorable reimbursement environment, increasing interest from larger companies in foot & ankle, and supportive survey results. All of these dynamics set the stage for a far better FY25 for TMCI which we believe warrants a higher multiple in shares and something SMID-cap investors can get on board with."

For an analyst ratings summary and ratings history on Treace Medical Concepts Inc click here. For more ratings news on Treace Medical Concepts Inc click here.

Shares of Treace Medical Concepts Inc closed at $9.69 yesterday.

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