Canaccord analyst William Plovanic lowered the price target on AngioDynamics (NASDAQ: ANGO) to $16.00 (from $18.00) while maintaining a Buy rating.

The analyst comments "ANGO delivered a good FQ3 with a revenue beat and increased guidance. However, we think the initial negative stock reaction may have come from optics of the company’s adj. EBITDA guidance, which was set at $10M-$12M for FY26. We initially thought this implied negative adj. EBITDA for FQ4 – we expect others to have had the same reaction – but guidance backs out the Easter Egg of a $5M milestone that occurred in FQ3. We now model $0.8M in FQ4 adj. EBITDA, which is down from $1.8M in FQ3 and our prior $1.8M FQ4 estimate, but is still ultimately positive, and we think the company could outperform this if it beats on revenue. The company’s Med-Tech results were good across the board. Mechanical thrombectomy’s quarter was highlighted by a strong AlphaVac print (which we believe is sustainable), where the device showed significant Q/Q growth above our expectations. Auryon continues to be a consistent star for the company, and NanoKnife is looking like a promising long-term growth engine as disposable and capital sales both grew >20%, likely catalyzed by recent reimbursement improvements and record procedure volume trends. The company will accelerate inventory production in anticipation of its sterilization partners planned maintenance, which should only occur for one quarter, as well as its continued manufacturing transition to Costa Rica, all of which will impact FQ4 gross margins. The planned inventory build will also lead to an extra $3M-$5M cash utilization, but the company has the balance sheet to support this with its existing cash and continued improvements in profitability. We reiterate our BUY rating and adjust our PT to $16 from $18."