Gold rally may be losing steam but no major correction seen: DB
Investing.com - Stifel lowered its price target on OrthoPediatrics Corp. (NASDAQ:KIDS) to $20.00 from $32.00 on Friday, while maintaining a Buy rating following the company’s disappointing third-quarter sales announcement. According to InvestingPro data, the stock is currently trading near its 52-week low of $16.59, with analyst targets ranging from $18 to $42.
OrthoPediatrics reported preliminary third-quarter 2025 sales of $61.2 million, representing 12.1% year-over-year growth but falling approximately $2 million short of both Stifel’s estimate of $63.2 million and the consensus forecast of $63.6 million.
During its preannouncement call, the company identified two key factors behind the weaker-than-expected performance: delayed 7D capital sales that pushed system placements and revenue recognition beyond the quarter’s end, and ongoing challenges in Latin American markets.
Management also cited longer-than-anticipated set placement times and order stocking restrictions as continuing sources of disruption, similar to issues experienced in the second quarter of 2025.
Despite the overall disappointment, Stifel noted some positive indicators, including 17% year-over-year global sales growth and 19% growth in U.S. sales when excluding the 7D capital sales component, suggesting underlying strength in the company’s core business. The company’s impressive 71.5% gross margin and 26% revenue growth over the last twelve months further support this view. Discover more detailed insights and 6 additional key ProTips for KIDS with a subscription to InvestingPro.
In other recent news, OrthoPediatrics Corp. reported preliminary third-quarter revenue of approximately $61.2 million, marking a 12% increase compared to the same period last year. Despite this growth, the company lowered its full-year 2025 revenue guidance due to delayed capital sales and international headwinds, now expecting between $233.5 million and $234.5 million, down from the previous guidance of $237.0 million to $242.0 million. This adjustment still represents a 14-15% growth over 2024 revenue. Analyst firm Citizens responded by lowering its price target for OrthoPediatrics from $35.00 to $25.00, while maintaining a Market Outperform rating.
Additionally, OrthoPediatrics announced a new distribution partnership with MY01 to enhance pediatric trauma care, focusing on the diagnosis of acute compartment syndrome. In leadership changes, the company appointed Kelly Fischer to its Board of Directors, following the retirement of Terry Schlotterback after over 15 years of service. Fischer brings extensive experience from her role as Senior Vice President and Chief Financial Officer at Cook Medical. These developments reflect OrthoPediatrics’ ongoing efforts to navigate market challenges and expand its technological capabilities.
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