MiMedx Group Inc. (NASDAQ:MDXG) is one of the 10 oversold small cap stocks to buy now.
On April 17, Northland reduced the price target on MiMedx Group Inc. (NASDAQ:MDXG) from $10 to $6, which still results in an adjusted upside of more than 75%. The firm also maintained an Outperform rating on the stock.
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Northland is taking a conservative stance regarding the near-term performance of the company’s Wound Care business. However, it also notes that the market is heavily discounting the near-term disruption. Northland continues to see robust prospects for MiMedx’s Surgical segment. This supports a bullish argument in favor of this oversold small-cap name.
On April 17, Craig-Hallum reduced the price target from $10 to $7 for MiMedx Group Inc. (NASDAQ:MDXG) while reiterating a Buy rating. This downward adjustment still yields more than 104% upside potential for investors.
The firm lowered its forward financial projections after the corporate restructuring was announced by the company. Following the January 1 Medicare reimbursement drop, the company has mentioned a much slower-than-expected recovery throughout its core Wound Care division. The firm has noted that MiMedx is rapidly implementing targeted operating expense reductions totaling $40 million annually. As a part of this aggressive cost-cutting exercise, the Chief Operating Officer post will be immediately eliminated, coupled with broader executive salary cuts.
MiMedx Group Inc. (NASDAQ:MDXG) develops and sells placental tissue allografts to several sectors of the healthcare industry. It is involved in the processing of human placental tissues, the membrane, the umbilical cord, and the placental disc. It offers a range of wound care products, including Regentkit wound gel, Epicord, Epixpress, Choriofix, and more.
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