In a report released today, Michael Matson from Needham reiterated a Buy rating on K2M Group Holdings (NASDAQ: KTWO), with a price target of $23. The company’s shares closed yesterday at $18.81.
Matson wrote:
“KTWO’s 1Q18 revenue beat while its EBITDA missed consensus. Revenue growth slowed slightly to 8% CC in 1Q18 from 9% CC in 4Q17. Management raised its revenue guidance due to an OUS distribution deal. We think that KTWO is well-positioned for strong growth in 2018 given new products (including its Mojave expandable spacer, Yukon OCT system, Palo Alto corpectomy cage, and Nile proximal fixation system), its new Spanish/Portuguese distributor agreement, and its Brainlab agreement. We reiterate our Buy rating given this and its large discount to peers (2018E EV/sales of 3.0x vs. small/mid-cap growth peers at a median of 8.2x).”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 8.8% and a 60.6% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Currently, the analyst consensus on K2M Group Holdings is Strong Buy and the average price target is $25, representing a 32.9% upside.
In a report released today, Oppenheimer also maintained a Buy rating on the stock with a $24 price target.
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The company has a one-year high of $25.99 and a one-year low of $16.44. Currently, K2M Group Holdings has an average volume of 245.2K.
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K2M Group Holdings, Inc. is a global medical device company. It focused on designing, developing and commercializing innovative and proprietary complex spine technologies and techniques. The company’s complex spine products are used by spine surgeons to treat some of the most difficult and challenging spinal pathologies, such as deformity, trauma and tumor.
