MiMedx Group (MDXG) Buy Rating Maintained at Needham

Needham & Company maintained a Buy rating on MiMedx Group (NASDAQ: MDXG) with a price target of $13.00. Analyst Mike Matson said he would be a buyer of weakness, though OIG subpoenas create an overhang.

"MDXG has received an OIG subpoena as part of a civil investigation into its sales and marketing practices. Based on prior med tech investigations, we note the following: 1) the investigations typically take years to be resolved with little news flow until resolution, 2) settlements generally require manageable fines, and 3) share prices decline sharply on the news but usually recover quickly. We think it's unlikely that the investigation will cause MDXG's revenue growth to slow, though it may drive higher legal expenses. Since we do not expect the investigation to hurt MDXG's revenue growth and we expect its share price to recover, we would be buyers on any weakness," said Matson.

For an analyst ratings summary and ratings history on MiMedx Group click here. For more ratings news on MiMedx Group click here.

Shares of MiMedx Group closed at $11.53 yesterday.

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