Raymond James cuts AxoGen target, says selloff overblown

Raymond James analyst Jayson Bedford lowered the firm’s price target on AxoGen (AXGN) to $21 from $25 and keeps an Outperform rating on the shares post the Q1 report. The softer Q1 gross margin “adds a new’ish wrinkle” to the AxoGen story, but this is more than accounted for in the 15% selloff today, the analyst tells investors in a research note. The firm views the selloff as overblown, saying AxoGen can grow revenue in the mid- to high-teens with a targeted strategy that “should drive a unique growth profile within small cap Med Tech.” Today’s weakness is a buying opportunity, contends Raymond James. It had confidence management will fix the near-term margin challenge.