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Investing.com - Truist Securities lowered its price target on OrthoPediatrics Corp. (NASDAQ:KIDS) to $18.00 from $22.00 while maintaining a Hold rating on the stock. According to InvestingPro data, the company’s stock has declined nearly 26% over the past year, with multiple analysts revising earnings expectations downward.
The price target reduction reflects lower estimates and a reduced long-term top-line growth outlook for the pediatric orthopedic device company.
Truist Securities applied a slightly lower enterprise value-to-sales (EV/Sales) multiple based on relative multiple compression experienced by the peer group since its last valuation update.
The new price target is based on 1.8x and 1.6x the firm’s lowered 2026 and 2027 revenue estimates, respectively, which positions OrthoPediatrics’ forward valuation below the peer group average of approximately 2.2x 2026 estimated sales.
Excluding a spine growth outlier (Carlsmed), the high-growth, small and mid-cap group trades at 1.7x, which Truist notes is more in line with the updated target multiple for OrthoPediatrics .
In other recent news, OrthoPediatrics Corp. reported preliminary third-quarter 2025 sales of $61.2 million, marking a 12% increase from the previous year. Despite this growth, the sales figures fell short of both Stifel’s estimate of $63.2 million and the consensus forecast of $63.6 million. Following these results, Stifel adjusted its price target for OrthoPediatrics from $32.00 to $20.00 while maintaining a Buy rating. Similarly, Citizens lowered its price target to $25.00 from $35.00, maintaining a Market Outperform rating.
In response to delayed capital sales and international challenges, OrthoPediatrics revised its full-year 2025 revenue guidance to between $233.5 million and $234.5 million, down from the previous $237.0 million to $242.0 million range. Despite the downward revision, the new guidance still anticipates 14-15% growth over 2024 revenue. Domestically, the company saw a 14% increase in revenue to approximately $48.7 million, while international revenue grew by 6% to about $12.5 million. Additionally, OrthoPediatrics announced a partnership with MY01 to enhance pediatric trauma care, focusing on acute compartment syndrome diagnosis using MY01’s Continuous Perfusion Sensing Technology.
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