Street Calls of the Week
Investing.com - Piper Sandler reduced its price target on Integer Holding (NYSE:ITGR) to $82.00 from $155.00 on Thursday, while maintaining an Overweight rating on the medical device contract manufacturer. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, with strong liquidity indicated by a current ratio of 3.41.
The revision follows Integer’s third-quarter results, which exceeded expectations on both revenue and earnings, with the company achieving 9.64% revenue growth over the last twelve months, but were overshadowed by the company’s initial 2026 outlook that revealed a three-quarter headwind from weaker-than-anticipated adoption of three new product launches.
Piper Sandler indicated these three underperforming products could potentially be linked to Johnson & Johnson, Medtronic, and Inspire Medical Systems, though the firm acknowledged this represents a typical challenge that contract manufacturing organizations occasionally face.
Despite expressing concerns about Integer’s business visibility, the research firm expects the company to recover given its importance to original equipment manufacturer customers, though it anticipates a "bumpy path" in the coming months.
The firm maintained its Overweight rating despite the significant price target reduction, citing the stock’s recent pullback and corresponding valuation adjustment to lowered financial projections, with expectations that the stock will recover over the next 12 months.
In other recent news, Integer Holdings Corporation reported third-quarter 2025 earnings that exceeded market expectations, with an adjusted EPS of $1.79 compared to the forecast of $1.68, and revenue of $468 million, slightly above the expected $466.45 million. Despite these positive results, the company faces challenges as KeyBanc lowered its price target to $93 due to a disappointing preliminary 2026 outlook. Additionally, Integer Holdings has completed a leadership transition with Payman Khales stepping in as President and CEO, succeeding Joseph Dziedzic.
Analyst firms have expressed concerns over Integer’s future prospects. BofA Securities downgraded the stock from Buy to Neutral, citing growth concerns and high customer concentration risks. Wells Fargo also downgraded the stock to Equal Weight, reducing the price target to $80, after Integer announced a revised demand forecast for key products. These developments highlight ongoing uncertainties for the company as it navigates product-specific headwinds and a strategic leadership change.
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