Argus raises Integra LifeSciences stock rating to buy, sets $28 target

Published 31/03/2025, 17:56
Argus raises Integra LifeSciences stock rating to buy, sets $28 target

Monday, shares of Integra LifeSciences (NASDAQ:IART) received an upgraded rating from Argus, moving from Hold to Buy, with a new price target set at $28.00. Currently trading at $21.98, InvestingPro analysis suggests the stock is undervalued. The firm’s analysts cited several factors contributing to the positive outlook on the company, including the resolution of supply issues and the expectation of stronger financial performance as the year unfolds. With an overall Financial Health score of "FAIR" and management actively buying back shares, the company shows promising signs of stability.

Integra LifeSciences, known for its medical devices and technology, has seen a resolution to previous supply challenges concerning its Integra Skin products. While currently not profitable, InvestingPro data indicates analysts expect profitability in 2025, with EPS forecasted at $2.44. This development is anticipated to lead to sequentially stronger growth in both revenue and profits during 2025. The company’s strategic moves, such as expanding into international markets and establishing a new manufacturing facility in China, are also expected to bolster its growth prospects beyond its current revenue of $1.61 billion.

The appointment of Mojdeh Poul as the new CEO of Integra LifeSciences is another reason for the upgraded outlook. Argus analysts believe that Poul’s leadership will enhance the company’s operational efficiency and sales execution. This is particularly relevant as Integra aims to meet the increasing demand for its reconstructive and neurosurgery products.

The analyst’s statement emphasized the company’s positioning for a turnaround, suggesting confidence in Integra’s future performance. "We see the company well positioned for a turnaround," the analyst noted, highlighting the sequential improvement in financial results and the strategic initiatives underway.

Investors and stakeholders in Integra LifeSciences may find this upgraded rating and new price target of $28.00 as an indicator of the company’s potential for improved performance and market expansion in the coming months.

In other recent news, Integra LifeSciences reported its financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.97, surpassing the forecasted $0.8543. However, the company experienced a slight miss in revenue, which came in at $442.65 million against a forecast of $445.14 million. Analysts from Citizens JMP maintained a Market Outperform rating and a $35 price target for Integra LifeSciences, reflecting confidence in the company’s long-term prospects despite some operational challenges. These challenges, including potential shipping holds and temporary back orders, have impacted the company’s guidance for the first quarter of 2025 and the full year.

Integra LifeSciences has projected revenue for 2025 to be between $1.65 billion and $1.72 billion, with an adjusted EPS range of $2.41 to $2.51. The company is addressing quality control and manufacturing issues, which could lead to potential shipping holds impacting revenues by $60 to $120 million. Despite these hurdles, the company is focusing on strategic international expansion and product innovation. The recent developments underscore the company’s commitment to operational improvements and its strategic direction, as highlighted by the reaffirmed analyst ratings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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