Needham analyst Michael Matson maintained a Buy rating on Invacare Corp (IVC) today and set a price target of $15. The company’s shares closed yesterday at $4.67, close to its 52-week low of $3.05.
Matson said:
“IVC’s business excluding North America is growing and profitable. In contrast, IVC’s North American business has suffered myriad challenges in recent years. It seemed to be on a path to recovery only to be hit by tariffs and Medicare changes in 3Q18. We believe that IVC is trading as a distressed asset due to its recent history of declining revenue and negative margins and cash flow. However, we think ~81% of IVC is now healthy and worth ~$700M (based on a sum-of-parts) and we believe that it could stabilize its revenue, margins, and cash flow by significantly shrinking or exiting the problematic 19% of its business. If IVC is able to deliver on this, we think its share price could see a large increase from current levels.”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.8% and a 62.7% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Invacare Corp has an analyst consensus of Moderate Buy, with a price target consensus of $15.
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The company has a one-year high of $20 and a one-year low of $3.05. Currently, Invacare Corp has an average volume of 1.01M.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IVC in relation to earlier this year.
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Invacare Corp. engages in the manufacture and distribution of medical equipment used in non-acute care settings. It focuses on medical device solutions for congenital, acquired, and degenerative ailments. It operates through the following segments: Europe, NA/HME, Institutional Products Group, and Asia Pacific.
