Street Calls of the Week
Investing.com - Integer Holding (NYSE:ITGR) saw its stock rating downgraded from Buy to Neutral by BofA Securities on Friday, accompanied by a significant price target reduction to $87.00 from $135.00. According to InvestingPro data, the stock appears undervalued at its current price of $73.89, despite trading at a relatively high P/E ratio of 46.6x.
The downgrade comes as BofA Securities expressed concerns about Integer’s visibility and growth prospects following the company’s 2026 guidance cut. The firm highlighted risks associated with Integer’s high customer concentration, noting that its top three customers account for approximately 50% of revenue. However, InvestingPro analysis shows the company maintains strong financial health with a current ratio of 3.41, indicating robust liquidity management. The company’s overall financial health score is rated as "GREAT" by InvestingPro’s comprehensive evaluation system.
BofA Securities questioned Integer’s position in the PFA (Pulsed Field Ablation) market, observing that while the PFA market has experienced significant growth, Integer’s growth has slowed. This suggests the company may not be aligned with the winning products in this segment.
The research firm also raised doubts about the conservatism of Integer’s reset expectations, specifically questioning why second-half 2026 growth would improve as the company projects. BofA Securities noted uncertainty about why certain EP (Electrophysiology) products wouldn’t continue declining into 2027.
BofA Securities expressed skepticism regarding Integer’s assumption that revenue growth will reaccelerate back to 6-8% in 2027, suggesting that market dynamics in the PFA space are unlikely to change significantly, with market winners likely continuing to capture the majority of the market. Recent InvestingPro data shows the company achieved revenue growth of 9.64% in the last twelve months, with additional insights and detailed analysis available in the comprehensive Pro Research Report, one of 1,400+ deep-dive reports available to subscribers.
In other recent news, Integer Holdings Corporation reported its third-quarter 2025 earnings, exceeding market expectations. The company posted an adjusted earnings per share (EPS) of $1.79, surpassing the anticipated $1.68, and achieved a revenue of $468 million, slightly above the forecasted $466.45 million. Despite these positive earnings results, investor concerns about future guidance and challenges in the electrophysiology and neuromodulation product lines led to a significant stock drop. Additionally, Wells Fargo downgraded Integer Holdings from Overweight to Equal Weight, reducing the price target from $132.00 to $80.00. The downgrade was influenced by Integer’s revised 2026 outlook, which highlighted lower demand forecasts for two electrophysiology products and one neuromodulation product from an emerging customer. These developments reflect the company’s current challenges and the cautious stance of analysts regarding its future performance.
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