Needham lowers Enovis stock price target to $49 on peer multiple contraction

Published 07/08/2025, 20:24
Needham lowers Enovis stock price target to $49 on peer multiple contraction

Investing.com - Needham has lowered its price target on Enovis Corp (NYSE:ENOV) to $49.00 from $57.00 while maintaining a Buy rating, citing peer multiple contraction despite positive quarterly results. Currently trading at $28.34, significantly below its 52-week high of $49.83, InvestingPro analysis suggests the stock is undervalued, with analysts maintaining targets ranging from $37 to $75.

Enovis reported second-quarter 2025 revenue, EBITDA, and EPS that exceeded consensus expectations, prompting management to raise its 2025 revenue guidance due to increased currency benefits and improved core business performance. With a market capitalization of $1.63 billion and an overall Financial Health score of "FAIR" according to InvestingPro, the company shows promising fundamentals despite recent stock performance.

The company’s organic revenue growth slowed to 5.1% in Q2 2025 from 10.4% in Q1 2025, but after adjusting for selling days (-200 bps in Q2 and +350 bps in Q1), growth remained relatively stable at 7.1% and 6.9% respectively.

Growth was primarily driven by 8% organic growth in the Reconstructive segment and 3% organic growth in the Prevention and Recovery (P&R) segment, while the company’s adjusted gross margin improved by 90 basis points year-over-year.

Management also raised EBITDA and EPS guidance to account for a temporary pause in tariffs, though the adjusted EBITDA margin remained flat compared to the previous year.

In other recent news, Enovis Corp reported impressive financial results for the second quarter of 2025, surpassing Wall Street expectations. The company announced adjusted earnings per share of $0.79, which is approximately 9.92% higher than the forecasted $0.7187. Enovis’s revenue also exceeded projections, reaching $564.5 million compared to the anticipated $555.31 million. These strong financial results have caught the attention of investors and analysts alike. While no specific analyst upgrades or downgrades were mentioned, the positive earnings report is likely to influence future assessments. These developments highlight Enovis’s current financial performance and may impact investor sentiment.

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