Figma Shares Indicated To Open $105/$110
On Friday, Truist Securities analyst Richard Newitter updated the price target on Integer Holdings (NYSE:ITGR), a medical device outsource manufacturer, from $140.00 to $150.00, while reaffirming a "Buy" rating on the shares. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $133 to $158, with 4 analysts recently revising their earnings estimates upward. Newitter’s valuation of Integer Holdings is based on the company’s growth prospects and financial performance relative to its peers.
According to Newitter, profitable small to mid-size (SMID) companies with high single-digit revenue growth and low-to-mid-teens growth prospects are typically valued between 18 to 24 times next twelve months (NTM) price-to-earnings (P/E) average, while the broader profitable SMID universe is valued at around 17.5 times. Integer Holdings, he suggests, should be priced at the upper end of this range due to its consistent organic growth and additional growth from mergers and acquisitions (M&A).
Newitter highlighted Integer’s 7-8% annual organic growth, complemented by a 1-2% annual contribution from M&A activities. He also noted that the company’s earnings per share (EPS) are growing at a rate one and a half to two times that of its revenue growth. The revised $150 price target is derived from applying an approximate 21 times P/E multiple on Integer’s projected 2026 earnings per share.
The analyst’s updated earnings forecast includes the impact of Integer’s first-quarter performance, which exceeded expectations, as well as a lower projected share count than was initially modeled. This adjustment reflects a P/E multiple in line with other profitable SMID-cap medical technology companies that exhibit high single-digit organic revenue growth and double-digit EPS growth.
Integer Holdings’ new price target and sustained "Buy" rating reflect Truist Securities’ positive outlook on the company’s financial health and growth trajectory within the medical device sector. InvestingPro data confirms this positive outlook, showing revenue growth of 6.95% and an overall financial health rating of "GREAT." For deeper insights into Integer Holdings’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with additional ProTips and advanced financial metrics.
In other recent news, Integer Holdings Corporation reported first-quarter results that exceeded analyst expectations. The company posted an adjusted earnings per share of $1.31, surpassing the analyst estimate of $1.23. Revenue for the quarter was $437.39 million, which also beat the consensus estimate of $428.51 million and marked a 7% year-over-year increase. Integer raised its full-year adjusted earnings per share guidance to a range of $6.15 to $6.51, up from the previous consensus of $6.07. The Cardio & Vascular segment was a significant contributor to this growth, with a 17% increase in sales driven by new product launches and recent acquisitions. Meanwhile, Cardiac Rhythm Management & Neuromodulation sales grew by 2%, although sales in Other Markets declined by 37% due to a planned exit from the Portable Medical (TASE:BLWV) business. Integer’s adjusted operating income for the quarter rose 14% year-over-year to $71 million, and adjusted EBITDA also increased by 14% to $92 million. The company’s leverage ratio was reported at 3.3 times adjusted EBITDA, following recent acquisitions and a convertible note offering.
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