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Investing.com - Piper Sandler has reduced its price target on OrthoPediatrics Corp. (NASDAQ:KIDS) to $22.00 from $30.00 while maintaining an Overweight rating after the company preannounced disappointing third-quarter results. 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’ preliminary Q3 2025 revenue missed Piper Sandler’s estimates by 6% and Street expectations by 4%. The company also lowered its full-year revenue guidance and reduced its long-term growth rate projection to 12%. Despite these challenges, InvestingPro analysis indicates the company maintains a strong liquidity position with a current ratio of 6.66 and operates with moderate debt levels.
The revenue shortfall was primarily attributed to lower-than-expected sales of the company’s 7D system and continued weakness in its Latin American business, which has been underperforming throughout the year.
Despite these challenges, OrthoPediatrics’ core U.S. business demonstrated strong performance with 19% year-over-year growth. The company maintained its EBITDA expectations for the current year and still anticipates reaching free cash flow breakeven next year.
Piper Sandler suggested that management might be setting conservative revenue expectations that the company can meet or exceed going forward, potentially positioning the stock for future appreciation despite likely near-term weakness.
In other recent news, OrthoPediatrics Corp. reported preliminary third-quarter revenue of approximately $61.2 million, marking a 12% increase compared to the same quarter last year. However, this figure fell short of various analysts’ estimates, including BTIG’s and Stifel’s, which projected $63.2 million, and the consensus forecast of $63.6 million. The company also lowered its full-year 2025 revenue guidance, citing delayed capital sales and international challenges. Following these announcements, several firms adjusted their price targets for OrthoPediatrics. BTIG reduced its price target from $39 to $23, while maintaining a Buy rating. Truist Securities lowered its target to $18 from $22 and kept a Hold rating, reflecting a reduced long-term growth outlook. Stifel adjusted its target from $32 to $20, also maintaining a Buy rating. Meanwhile, Citizens reduced its price target from $35 to $25, maintaining a Market Outperform rating.
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