Canaccord cuts Enovis stock target to $70, maintains Buy rating

Published 14/05/2025, 12:44
Canaccord cuts Enovis stock target to $70, maintains Buy rating

On Wednesday, Canaccord Genuity adjusted their financial outlook for Enovis Corp (NYSE:ENOV), reducing the price target from $75.00 to $70.00, while continuing to endorse the stock with a Buy rating. According to InvestingPro data, the stock has shown significant momentum with a 9% return over the last week, despite trading at $37.35, well below analyst targets ranging from $37 to $75. The revision was based on a consistent enterprise value to sales (EV/Sales) multiple used in the firm’s previous valuation, but with an increased discount applied to the comparative group.

Kyle Rose of Canaccord Genuity provided insights into the decision, stating that despite a slight increase in the valuation average of comparative companies and a rise in the 2026 revenue estimate for Enovis, a larger discount was warranted. The new price target represents a 29% discount to the median mid-cap MedTech comparative group’s expected 2025 enterprise value to sales ratio. InvestingPro analysis indicates the company maintains strong financial health with a current ratio of 2.55, though it operates with significant debt.

The $70.00 target is anchored on a 2.3x EV/Sales multiple, which is applied to the anticipated 2026 revenue of $2,366 million. This approach reflects a conservative stance in valuation, taking into account the current market conditions and forecasts for the medical technology sector in which Enovis operates.

Enovis, a medical technology company, has been navigating the dynamic healthcare market, and analysts at Canaccord Genuity are closely monitoring its performance and industry comparatives to provide updated guidance to investors. The firm’s maintained Buy rating suggests that despite the price target reduction, they perceive the company’s stock as a potentially valuable investment.

Investors and market watchers will likely follow Enovis’ progress closely, as it aims to meet the revenue expectations set for 2026, which have now been factored into Canaccord Genuity’s updated valuation model for the company. InvestingPro analysis suggests the stock is currently undervalued, with five analysts recently revising earnings estimates upward. Subscribers can access the comprehensive Pro Research Report for deeper insights into Enovis’s financial health, valuation metrics, and growth prospects.

In other recent news, Enovis Corporation reported its first-quarter 2025 financial results, which exceeded analysts’ expectations with an adjusted earnings per share (EPS) of $0.81, surpassing the forecast of $0.74. The company achieved revenue of $559 million, marking an 8% year-over-year increase, although slightly below the forecast of $558.9 million. Enovis demonstrated significant operational efficiency with a 300 basis point increase in adjusted gross margins and a 160 basis point rise in adjusted EBITDA margins. Despite these strong financial results, JMP Securities analyst David Turkaly adjusted the price target for Enovis to $55 from $62, while maintaining a Market Outperform rating. This revision reflects a more conservative valuation in light of the company’s financial figures and market conditions. Enovis also highlighted new product launches across multiple segments and is preparing for a leadership transition. The company’s guidance for 2025 includes a revenue range of $2,220 to $2,250 million and an adjusted EBITDA range of $385 to $395 million.

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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