Lake Street analyst Brooks O'Neil believes his fundamental thesis on Alphatec (ATEC) is playing out despite the recent weakness in the shares. CEO Pat Miles and his team are spine experienced and taking "significant steps" to strengthen the company's distributor relationships and to revitalize its product line, O'Neil tells investors in a research note. Initial feedback on new products has been very positive, says the analyst. He affirms his Buy rating on Alphatec with a $7 price target. Further, following reports of Smith & Nephew's (SNN) interest in NuVasive (NUVA), O'Neil says one of the larger players in the spine space "might take a run at" Alphatec should its transformation continue as he expects.