RBC Capital Markets Is Optimistic About MiMedx Group Inc (NASDAQ:MDXG)

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MiMedx Group Inc (NASDAQ:MDXG) is on an upswing after the research firm, RBC Capital Markets included the stock among its list of high-performing small cap stocks for 2016. RBC’s Chief Equity Strategist, Jonathan Golub mentioned in his research report that the small cap companies are likely to show a relatively higher earnings growth in the next one year.

Among top performers

The research firm cited MiMedx among the secular and stable growth stocks to look forward to in 2016. The company’s expected revenue growth during the fiscal year 2015 is pegged at 58.2% while it is likely to register a revenue growth of 29.4% next year. Given these expectations, the company has the potential to deliver high yields, as per RBC’s research note.

Apart from this, MiMedx Group Inc (NASDAQ:MDXG) has also updated its shareholders of significant developments it made in the last one year. The company took pride in reporting that it has been issued 12 new patents during 2015 alone. The company’s amniotic membrane allograft product range received four new patents while its CollaFix technology platform was issued eight patents. The company was issued three patents in November alone relating to its amniotic membrane and CollaFix technology.

Health coverage and earnings

In a recent press note, the company said that coverage of its products by commercial health plans has grown by 9% within a period of one month. A total of 168 commercial health plans covering nearly 170.4 million lives is providing coverage for its allografts.

Earlier in October the company reported its third quarter results. The earnings per share of the company stood at $0.06, in line with the market consensus. At the same time, MiMedx Group Inc (NASDAQ:MDXG) reported revenues to the tune of $49.02 million, representing 46.2% growth year-over-year. The revenues so reported came higher than the market estimates of $.48.89 million.

The stock price of the company surged by 1.57% to $9.07 during the previous trading session.

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