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On Thursday, Citi analysts upgraded Integer Holdings Corporation (NYSE:ITGR) stock from Neutral to Buy and increased the price target to $140 from $133. The firm recognized the company’s strong first-quarter performance, which saw sales exceed expectations. Integer reported $437.4 million in revenue, a 6.3% organic increase and a 9.3% days adjusted rise, surpassing the consensus estimate of $428.7 million. According to InvestingPro data, the company maintains impressive revenue growth of 10.2% over the last twelve months, with a robust market capitalization of $4.15 billion. Segment growth met predictions, with Cardio & Vascular sales growing organically by 10.9% due to leveraging the PFA market opportunity. CRM/Neuromodulation segments saw a 2.2% increase, while Other Markets experienced a 22.9% decline.
The company’s cost improvements contributed to the expansion of operating margins to 16.2% from 15.3% year-over-year, resulting in earnings per share (EPS) of $1.31, up 15%. Following this successful start to the year, Integer’s management has maintained its 2025 organic revenue growth guidance at 8-10%, which Citi analysts regard as conservative. Additionally, EPS guidance for the year was lifted to $6.15-$6.51 from the previous range of $5.84-$6.20, factoring in reduced interest expenses from convertible debt refinancing.
Citi noted that Integer was largely unaffected by tariffs, estimating only a $1-5 million impact for 2025, as the company has minimal exposure to China and has not observed significant changes in customer purchasing behavior. In executive news, Integer announced that current COO Payman Khales will take over as CEO effective October 24, while current CEO Joe Dziedzic will remain in an advisory capacity until March 2026. This transition is seen as smooth, with the new CEO already considered "ready now" by Citi analysts.
Citi’s upgrade to a Buy rating and the price target increase to $140 is based on a 20-21x multiple of projected 2026 EPS, with a range of $138 to $145. With Integer’s positioning in high-growth markets and effective leadership transition, the firm anticipates the company will accelerate its progress moving forward. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, trading at a P/E ratio of 54.1. Investors seeking deeper insights can access Integer’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, which provides detailed analysis and actionable intelligence for informed investment decisions.
In other recent news, Integer Holdings reported first-quarter results that surpassed analyst expectations, resulting in a raised full-year adjusted earnings per share (EPS) outlook. The company posted an adjusted EPS of $1.31, exceeding the analyst estimate of $1.23, with revenue reaching $437.39 million, above the consensus estimate of $428.51 million. This represents a 7% year-over-year increase, driven by a 6% contribution from organic growth. The Cardio & Vascular segment notably grew 17% year-over-year, supported by new product launches and recent acquisitions. Integer Holdings has adjusted its full-year EPS guidance to a range of $6.15 to $6.51, up from the previous analyst consensus of $6.07. Additionally, Truist Securities analyst Richard Newitter raised the company’s stock target to $150, maintaining a "Buy" rating, citing Integer’s consistent organic growth and successful mergers and acquisitions. The analyst’s valuation reflects a positive outlook on the company’s financial health and growth trajectory. Integer’s adjusted operating income for the quarter rose 14% to $71 million, with adjusted EBITDA also increasing 14% to $92 million.
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