Cantor Fitzgerald Reiterates "Overweight" Rating for ORGO with $7 Price Target

Cantor Fitzgerald analyst Ross Osborn has reiterated an "Overweight" rating for Organogenesis Holdings (ORGO) with a $7 price target. The analyst believes the company has strong growth potential. The average target price for ORGO is $7, suggesting a 55.90% upside from the current price. Based on the consensus recommendation from 3 brokerage firms, the average brokerage recommendation is 1.7, indicating an "Outperform" status.

Cantor Fitzgerald, under the guidance of analyst Ross Osborn, has reiterated its "Overweight" rating for Organogenesis Holdings (ORGO) with a price target of $7.00 USD. The analyst's stance reflects continued confidence in the company's market performance and growth potential. This decision aligns with the current market sentiment, as the average target price for ORGO is also $7.00, suggesting a 55.90% upside from the current price of $4.49 [1].

The consensus recommendation from 3 brokerage firms indicates an average rating of 1.7, which translates to an "Outperform" status. This rating scale ranges from 1 to 5, where 1 signifies a Strong Buy and 5 denotes a Sell. The "Outperform" status underscores the positive outlook on ORGO's prospects [1].

Organogenesis Holdings specializes in advanced wound care and surgical solutions, with skin substitutes forming a core part of its product portfolio. The company has shown impressive momentum, with a 40% gain year-to-date and over 55% return in the past year. However, recent regulatory changes, particularly the proposed rule for the CY 2026 Medicare Physician Fee Schedule, could impact its business model. The Centers for Medicare & Medicaid Services (CMS) proposal aims to treat skin substitutes as "incident-to supplies," potentially reducing spending on these products by nearly 90% [2].

Despite these challenges, Organogenesis Holdings has reported a significant decline in Q1 2025 revenue, decreasing by 21% year-over-year to $86.7 million. The company also experienced an operating loss of $26.7 million, an increase from the $3.9 million loss in the same quarter last year. Nevertheless, Organogenesis reaffirmed its full-year revenue guidance of $480-$535 million, indicating confidence in its long-term market opportunities. The company is preparing to submit additional clinical evidence to support its products and remains optimistic about future opportunities arising from regulatory changes [2].

In summary, Cantor Fitzgerald's reiteration of the "Overweight" rating for Organogenesis Holdings reflects a positive outlook on the company's growth potential despite recent regulatory challenges. The average target price and consensus recommendation support this view, making ORGO an attractive investment opportunity for investors.

References:
[1] https://www.gurufocus.com/news/2978078/orgo-cantor-fitzgerald-reiterates-overweight-rating-with-7-target-orgo-stock-news
[2] https://www.investing.com/news/analyst-ratings/organogenesis-stock-rating-reiterated-by-cantor-fitzgerald-amid-reimbursement-changes-93CH-4135464