Street Calls of the Week
Investing.com - KeyBanc lowered its price target on Integer Holding (NYSE:ITGR) to $93.00 from $133.00 on Friday, while maintaining an Overweight rating on the medical device manufacturer’s stock. According to InvestingPro data, the company currently trades at a P/E ratio of 46.64, with analyst targets ranging from $121 to $155.
The significant price target reduction follows what KeyBanc described as a "disappointing preliminary 2026 outlook" that reflected multiple product-specific headwinds for the company.
Despite the substantial 30% cut to the price target, KeyBanc analyst Brett Fishbin indicated the firm believes "there is likely upside to shares following today’s rebasing" of expectations.
The updated price target incorporates both subdued expectations for 2026 and a lower valuation multiple for Integer Holding shares, according to the research note.
KeyBanc’s initial 2027 estimates for the company include growth at the low end of Integer’s outlook—approximately 200 basis points above market—and operating income growth below the company’s objective of twice the rate of sales growth.
In other recent news, Integer Holdings Corporation reported its third-quarter 2025 earnings, exceeding market expectations with an adjusted EPS of $1.79, compared to a forecast of $1.68, and revenue of $468 million, slightly above the anticipated $466.45 million. Despite this financial success, the company faces challenges as BofA Securities downgraded Integer’s stock rating from Buy to Neutral, citing concerns over growth prospects and high customer concentration, with the top three customers accounting for approximately 50% of revenue. Wells Fargo also downgraded the stock from Overweight to Equal Weight, reducing the price target to $80.00 from $132.00, due to a weak product outlook and revised demand forecasts for specific product lines.
Additionally, Integer Holdings has completed a planned leadership transition with Payman Khales assuming the role of President and CEO, succeeding Joseph Dziedzic, who will continue as an advisor until March 2026. Khales has also joined the company’s Board of Directors. These developments come amid Integer’s announcement of a depressed 2026 outlook, impacting analyst confidence and stock ratings. The company has highlighted unexpected challenges in its electrophysiology and neuromodulation product lines, contributing to the cautious outlook.
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