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Investing.com - Canaccord Genuity lowered its price target on Enovis Corp (NYSE:ENOV) to $58.00 from $70.00 on Friday, while maintaining a Buy rating following the company’s second-quarter earnings report. The stock currently trades at $28.52, significantly below the analyst consensus target range of $37-$75. According to InvestingPro data, the stock has shown significant volatility, with a 10.8% gain over the past week despite a 35% decline year-to-date.
The medical technology company reported solid second-quarter results with 11% reported growth in its Reconstruction segment and 5% reported growth in Prevention and Recovery. Reconstruction growth was driven by high single-digit growth in global extremities, led by shoulder products, and mid-single-digit growth in global hips and knees. The company’s overall revenue growth stands at 18.3% for the last twelve months, with a healthy gross profit margin of 58.4%.
Enovis raised its full-year 2025 guidance across revenue, organic growth, EBITDA, and EPS, citing operational execution, foreign exchange tailwinds, and decreased expected tariff impacts. While tariffs began affecting costs in the second quarter, the impact on the profit and loss statement is expected to start in the third quarter.
The company’s adjusted gross margin expanded 90 basis points year-over-year due to favorable product mix and operational execution, while adjusted EBITDA margin remained flat at 17.2%. Enovis maintained its expectation to be free cash flow positive for fiscal year 2025.
Canaccord noted that Enovis’s next-generation ARVIS surgical guidance system launch has been delayed by approximately six months to incorporate enhancements, though surgeon excitement around the platform remains high. The firm believes Enovis is "significantly undervalued" compared to mid-cap medical technology peers. InvestingPro analysis supports this view, with multiple valuation metrics suggesting the stock is trading below its Fair Value. Subscribers can access 8 additional ProTips and a comprehensive analysis of Enovis’s financial health and growth potential through the Pro Research Report.
In other recent news, Enovis Corp reported strong financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $0.79, which is 9.92% higher than the forecasted $0.7187. Enovis’s revenue reached $564.5 million, exceeding the anticipated $555.31 million. Following these positive results, the company raised its 2025 revenue guidance due to increased currency benefits and improved core business performance. Despite these encouraging figures, Needham adjusted its price target for Enovis from $57.00 to $49.00, maintaining a Buy rating. The adjustment was attributed to peer multiple contraction. These developments reflect significant recent activities surrounding Enovis Corp.
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