Oppenheimer Believes Integra Lifesciences (NASDAQ: IART) Still Has Room to Grow


In a report released yesterday, Steven Lichtman from Oppenheimer maintained a Buy rating on Integra Lifesciences (NASDAQ: IART), with a price target of $70. The company’s shares closed yesterday at $62.25, close to its 52-week high of $62.34.

Lichtman commented:

“IART’s goal is to increase EBITDA margin from 23-24% in 2018 to 28-30% in 2022. In this note, we highlight the many earnings levers we see ahead that support this solid outlook. The primary drivers of P&L leverage are expected to be on the gross margin line led by product mix, targeted divestitures, increased automation and a plan to reduce manufacturing/distribution footprint. Beyond EBITDA leverage, one- time Codman integration cash costs are expected to lessen after 2018, leading to a solid step-up in FCF conversion; cash will be used to pay down debt, which should drive further earnings leverage. In total, we see low-teens earnings growth power over the next few years and don’t believe that’s reflected in the shares at current levels.”

According to TipRanks.com, Lichtman is ranked 0 out of 5 stars with an average return of -6.7% and a 50.9% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Wright Medical Group, K2M Group Holdings, and Tandem Diabetes.

Currently, the analyst consensus on Integra Lifesciences is Moderate Buy and the average price target is $60, representing a -3.6% downside.

In a report issued on April 25, Jefferies also reiterated a Buy rating on the stock with a $70 price target.

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Based on Integra Lifesciences’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $357 million and quarterly net profit of $10.99 million. In comparison, last year the company earned revenue of $259 million and had a net profit of $6.39 million.

Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Richard Caruso, a Major Shareholder at IART sold 32,880 shares for a total of $1,764,998.

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Integra LifeSciences Holdings Corp. engages in the manufacture and sale of medical instruments, devices, and equipment. It operates through the Codman Specialty Surgical and Orthopedics and Tissue Technologies segments.

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