BTIG maintains Buy on OrthoPediatrics, $38 price target

Published 19/05/2025, 09:56
BTIG maintains Buy on OrthoPediatrics, $38 price target

Monday, shares of OrthoPediatrics Corp. (NASDAQ:KIDS), a $571 million market cap company with impressive 31% revenue growth, maintained a stable outlook as BTIG reiterated its Buy rating and $38.00 price target. The endorsement follows BTIG’s attendance at the Pediatric Orthopaedic Society of North America’s Annual Meeting in Las Vegas, where the firm engaged with pediatric orthopedists and a KIDS distributor from the North East.

The feedback from the meeting highlighted a robust upcoming Summer season, with procedural volumes expected to be healthy as schedules are already booked through the Fall. This positive outlook is bolstered by the continued favorable reception of KIDS’ products among physicians, who underscore the company’s leading position in the pediatric orthopedic market, supported by its strong gross margin of 73%.

BTIG’s analyst noted the growth trajectory of OrthoPediatrics, anticipating the company to reach free cash generation in the fourth quarter of 2025. The firm also foresees OrthoPediatrics advancing to a stage of maturity characterized by self-sustainability and capital efficiency.

The analyst’s statement underscores the strong market presence and potential for OrthoPediatrics, as the company continues to garner positive reactions for its product offerings within the specialized sector of pediatric orthopedics. With the company’s strategic progress and the anticipation of a busy period ahead, BTIG stands firm on its Buy rating and $38 price target for OrthoPediatrics stock.

In other recent news, OrthoPediatrics Corporation reported a 17% year-over-year increase in revenue for the first quarter of 2025, reaching $52.4 million, which exceeded the forecast of $51.68 million. The company also adjusted its Membership Interest Purchase Agreement, opting to pay for its acquisition of Medtech Concepts, LLC with shares instead of cash. Needham analysts maintained a Buy rating for OrthoPediatrics, setting a price target of $42, citing the company’s strategic initiatives and robust revenue growth. Despite facing a challenging comparison period, OrthoPediatrics saw a 19% increase in U.S. revenue, contributing to its overall financial performance. The company also received FDA approvals for several new products, enhancing its portfolio and signaling potential future growth. OrthoPediatrics adjusted its revenue outlook upwards for 2025 while keeping its adjusted EBITDA guidance steady. Analysts from Needham highlighted potential growth drivers such as new product launches and international expansion as key factors for the company’s sustained performance. Additionally, OrthoPediatrics anticipates positive free cash flow by the fourth quarter of 2025, indicating improved financial stability.

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