K2M Group Holdings Gets a Buy Rating from Oppenheimer

In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on K2M Group Holdings (NASDAQ: KTWO), with a price target of $24. The company’s shares closed yesterday at $18.81.

Lichtman noted:

“1Q18 sales of $67.9M (+8%cc) were above our $65.8M; US growth was in-line (and above market) at +8%, while OUS beat on higher stocking orders in Latin America. Adjusted EBITDA was below our estimate (-$3M versus -$1.1M) on elevated G&A expenses from discrete legal/administrative expenses that are expected to reduce for the rest of ’18. Sales guidance was raised $3M to $283-287M owing to transition from stock-based distributor to commission-based in Spain; this is accretive to both sales and GM. KTWO maintained expectations for US sales (+10-11%) and adjusted EBITDA of $4-8M. Opportunities in focus looking ahead include new product rollouts (MOJAVE, YUCON, PALO ALTO), contribution from KTWO’s new distributor in Japan and incremental revenue from KTWO’s new partnership with Brainlab.”

According to TipRanks.com, Lichtman is ranked 0 out of 5 stars with an average return of -6.6% and a 51.2% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Integra Lifesciences, Wright Medical Group, and Tandem Diabetes.

K2M Group Holdings has an analyst consensus of Strong Buy, with a price target consensus of $25.

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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.