Stifel analysts maintain buy rating on OrthoPediatrics stock

Published 06/06/2025, 16:30
Stifel analysts maintain buy rating on OrthoPediatrics stock

On Friday, Stifel analysts reiterated their Buy rating and maintained a $32.00 price target on OrthoPediatrics Corp. (NASDAQ: NASDAQ:KIDS) stock, representing approximately 49% upside from the current price of $21.43. According to InvestingPro data, analyst targets range from $26 to $50, with a strong consensus recommendation of 1.71 (Buy). This decision follows a visit to the company’s Boston-based Specialty Bracing (OPSB) headquarters earlier this week. During the visit, the analysts explored the commercial potential and strategy of the business.

The analysts’ visit included meetings with OPSB specialists and observations of pediatric bracing patients being fitted. They expressed being impressed with OPSB leadership, operations, and the potential synergies between OPSB’s bracing business and OrthoPediatrics’ surgical products. The company has demonstrated strong revenue growth of 31.3% over the last twelve months, with a robust gross profit margin of 72.8%. The complementarities between the bracing and surgical businesses were noted as a key factor in driving growth opportunities for the company.

Stifel analysts highlighted the potential for OrthoPediatrics and OPSB to replicate the Boston model in pediatric centers across the United States. While the meetings confirmed the significant clinic expansion opportunity, the analysts stated that their numbers remain unchanged until there is more clarity on the pace of expansion.

The report emphasized the strength of OrthoPediatrics’ existing U.S. pediatric hospital reach and OPSB’s clinic expansion potential. The proven OPSB clinic model and innovation pipeline were also noted as factors positioning the company for above-average growth in the future.

In other recent news, OrthoPediatrics Corp. reported its first-quarter financial results, revealing a revenue increase that surpassed consensus estimates, though its adjusted EBITDA did not meet expectations. Despite this, the company has revised its revenue forecast upwards for 2025 while maintaining its adjusted EBITDA guidance. In a strategic move, OrthoPediatrics amended the terms of its acquisition agreement with Medtech Concepts, LLC, opting to pay with unregistered shares of its common stock instead of cash, as detailed in a recent SEC filing. The amendment involves distributing shares over three years, reflecting potential cash flow management or capital structuring strategies.

Analyst firms have maintained a positive outlook on OrthoPediatrics. Needham reaffirmed a Buy rating with a $42 price target, citing new product launches and market expansion as potential growth drivers. Stifel also reiterated a Buy rating, setting a $32 price target, following insights gained from the Pediatric Orthopaedic Society of North America (POSNA) meeting. Meanwhile, BTIG maintained a Buy rating with a $38 price target, expecting the company to reach free cash generation by the fourth quarter of 2025.

Additionally, OrthoPediatrics’ shareholders approved several key matters at the 2025 Annual Meeting, including the election of directors and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm. These developments highlight the company’s ongoing strategic efforts and its engagement with stakeholders in the pediatric orthopedic market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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