Raymond James has increased its price target for Integer Holdings Corporation (ITGR, Financial) from $145 to $150 while maintaining its Outperform rating on the company's shares. This change follows Integer's robust performance in the first quarter, which the firm described as "strong" in its latest research note.
Integer's management reaffirmed its guidance, although it excluded interest savings from a recent convertible offering. Raymond James suggests that this guidance might be somewhat conservative. Given the modest upside observed so far, the firm believes Integer is well-positioned to surpass its financial goals throughout the rest of the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Integer Holdings Corp (ITGR, Financial) is $147.88 with a high estimate of $158.00 and a low estimate of $133.00. The average target implies an upside of 21.75% from the current price of $121.46. More detailed estimate data can be found on the Integer Holdings Corp (ITGR) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Integer Holdings Corp's (ITGR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Integer Holdings Corp (ITGR, Financial) in one year is $109.25, suggesting a downside of 10.05% from the current price of $121.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Integer Holdings Corp (ITGR) Summary page.
ITGR Key Business Developments
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Integer Holdings Corp (ITGR, Financial) reported strong sales growth of 11% in the fourth quarter of 2024, both organically and on a reported basis.
- The company completed the divestiture of Electric Kim for $50 million, making it a pure play medical device company.
- Integer Holdings Corp (ITGR) ended the year with a leverage ratio of 2.6 times adjusted EBITDA, at the low end of their target range, providing capacity for strategic acquisitions.
- The company announced the acquisition of Precision Coating for $152 million and VSI Paroline for $28 million, enhancing their vertical integration and proprietary coating capabilities.
- Integer Holdings Corp (ITGR) expects continued above-market growth with expanding margins, projecting 8% to 10% sales growth and 11% to 16% adjusted operating income growth for 2025.
Negative Points
- The company faces uncertainty regarding tariffs, particularly in Mexico, which could impact operations and costs.
- Gross margin in the fourth quarter came in below expectations despite better revenue performance, attributed to inefficiencies during new product ramps.
- The exit from the portable medical product line is expected to result in a $29 million decline in sales by the end of 2025.
- Higher interest expenses and taxes impacted adjusted net income, with a noted increase in the adjusted effective tax rate due to new legislation.
- The strong performance of Integer Holdings Corp (ITGR) stock price has led to dilution in adjusted weighted average shares outstanding, affecting EPS.
