Stifel Raises Artivion's PT to $40, Maintains Buy Rating

Stifel Raises Artivion's PT to $40, Maintains Buy Rating

Stifel Financial has raised its price target for Artivion Inc. (NYSE:AORT) to $40.00, up from $30.00, while maintaining a Buy rating on the stock. The medical device company, currently valued at $1.56 billion, has seen its shares surge 26.5% over the past year, trading near its 52-week high of $32.94.

The price target increase follows Stifel’s conversations with six physicians who have used Artivion’s aortic arch dissection repair stent (AMDS) since its FDA humanitarian-device-exemption approval on December 4, 2024. According to Stifel, the physicians provided "encouraging and positive commentary" about their early experiences with the device, noting that it simplifies a complex procedure and improves outcomes compared to current standard treatments. The feedback indicated "robust immediate utilization expectations," no hospital resistance regarding pricing and reimbursement, and overall ease of device implantation, reinforcing Stifel’s previous positive assessment of the AMDS technology.

With Artivion scheduled to report earnings on August 7, Stifel views these physician inputs as positive signals that the AMDS launch is progressing well, positioning the company to capitalize on what it estimates as a $150 million US market opportunity.

In other recent news, Artivion Inc. reported first-quarter earnings for 2025 that exceeded expectations, with sales reaching $99 million compared to the forecasted $95 million. This growth was largely driven by the successful early launch of the AMDS product, which led to a 19% increase in the aortic stent graft business. Additionally, the On-X platform saw an 11% year-over-year growth, attributed to a recovery from previous supply chain issues. In a separate development, Artivion announced a private deal to repurchase approximately $95 million in principal amount of its 4.250% Convertible Senior Notes due 2025 in exchange for common stock. This transaction is expected to result in the issuance of about 4.1 million shares, with cash paid for accrued interest.

Shareholders recently approved executive compensation and the preliminary selection of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025. On the analyst front, JMP Securities maintained its Market Outperform rating with a $33 price target, while Canaccord Genuity initiated coverage with a buy rating and a $35 price target, citing strategic investments in aortic arch repair. Artivion’s fiscal year 2025 sales guidance indicates an 11% growth, with expectations for acceleration in the latter half of the year. These developments highlight Artivion’s ongoing strategic initiatives and financial performance.

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-raises-artivion-stock-price-target-to-36-on-positive-amds-feedback-93CH-4173762