Barrington analyst Michael Petusky maintained a Buy rating on Anika Therapeutics today and set a price target of $15.00.
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Michael Petusky has given his Buy rating due to a combination of factors that suggest Anika Therapeutics is currently undervalued. Despite the company’s stock trading near 14-year lows, Petusky believes this represents an overcorrection, and the shares are undervalued at present. The company’s OA pain business, though experiencing margin pressure, is expected to stabilize, potentially maintaining significant adjusted EBITDA margins, which the market does not seem to fully appreciate.
Furthermore, while Anika has faced execution challenges, including unsuccessful acquisitions and unmet trial endpoints, Petusky sees potential in the company’s products like the Integrity patch. The product is gaining traction, yet the company has been conservative in sharing positive data, which could help improve its valuation. Petusky maintains an OUTPERFORM rating with a price target of $15, based on revenue estimates and expected cash reserves.