Citizens has maintained its Market Perform rating on Avanos Medical (NYSE:AVNS), emphasizing a set of company-specific developments and targets that investors should monitor through 2026 and beyond. According to InvestingPro data cited by the research firm, Avanos presents valuation metrics that suggest potential upside from a yield and balance-sheet perspective, with a free cash flow yield of 12% and a price-to-book ratio near 0.8.
The firm highlighted a leadership transition at Avanos that occurred at the start of 2025. Dave Pacitti was named chief executive officer in April 2025, and Citizens notes that management has since realigned strategic priorities to concentrate on execution and to "position the company for the next phase of growth." That repositioning includes a revised long-term financial ambition: Avanos wants to reach approximately $1 billion in annual revenue by 2030, compared with the roughly $700 million of revenue the company expects for 2025.
Citizens’ reiteration of a neutral stance comes as Avanos posted third-quarter 2025 results that outperformed consensus expectations. The company reported adjusted earnings per share of $0.22, beating the forecast of $0.18, and generated revenue of $178 million versus the $167.5 million analysts had anticipated. These results underline a period of solid financial performance in the quarter cited by the research note.
Beyond the headline metrics, Avanos has also announced a strategic co-marketing arrangement with Siemens Healthineers. The partnership is focused on outpatient and interventional pain care technologies and is intended to combine Avanos’ radiofrequency ablation technologies with Siemens Healthineers’ imaging platforms. Citizens referenced these developments in its assessment of the company’s near-term positioning and growth initiatives.
The research note also drew attention to contemporaneous leadership activity in the healthcare technology space. Pulse Biosciences disclosed that Maria Sainz will join its board of directors effective January 9, 2026; Sainz brings more than 30 years of experience in healthcare technology to that role. Citizens included this information as part of the broader sector context surrounding corporate governance and strategic appointments.
Overall, Citizens’ analysis frames Avanos as a company undergoing strategic repositioning under new leadership while trading at valuation metrics that the firm characterizes as attractive on a free cash flow and book-value basis. Despite the stronger-than-expected quarterly performance and the Siemens Healthineers collaboration, the research house keeps a Market Perform rating rather than moving to a more bullish recommendation.
Sectors affected: Medical devices, healthcare technology, outpatient care and medical imaging.