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Needham maintains Buy rating on OrthoPediatrics shares with steady price target

EditorTanya Mishra
Published 09/13/2024, 06:56 AM
KIDS
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OrthoPediatrics Corp. (NASDAQ: NASDAQ:KIDS) has maintained its Buy rating and a $42.00 price target from investment firm Needham, following the company's investor day presentations.


During the event held on Thursday, the firm's management shared insights on growth strategies for their Scoliosis and Trauma & Deformity (T&D) sectors.


Additionally, the company announced the launch of its Enabling Technologies business and detailed plans to expand its OrthoPediatrics Specialty Bracing (OPSB) business.


The company also revealed its long-range plan for the years 2024E-2027E, which includes aims for high-teens revenue growth, a gross margin of approximately 74-75%, around 300 basis points of EBITDA margin improvement per year, and achieving cash flow positivity by 2026.


The optimism surrounding the company's future is underpinned by anticipated new product releases in its legacy T&D and Scoliosis segments, as well as the potential of its two early-stage businesses—OPSB and Enabling Technologies—which are expected to address large market opportunities with near-term product launches.


OrthoPediatrics' focus on specialized medical devices for children's orthopedics is supported by a strategic approach to growth and innovation.


With the company's latest announcements and the backing of a positive investment outlook, OrthoPediatrics appears poised to continue its trajectory in the medical device sector, Needham pointed out.


InvestingPro Insights


Following the upbeat investor day presentations, real-time data from InvestingPro further sheds light on OrthoPediatrics Corp.'s (NASDAQ:KIDS) financial health and market performance. The company's market capitalization stands at a solid $765.18 million, indicating investor confidence in its market position. Despite analysts not expecting the company to be profitable this year, OrthoPediatrics has shown a strong return over the last month with a 24.17% increase, highlighting positive market momentum. Additionally, the company's revenue growth remains robust, with a noteworthy increase of 27.7% in the last twelve months as of Q2 2024.


InvestingPro Tips underscore the company's financial prudence, as liquid assets exceed short-term obligations, and it operates with a moderate level of debt. This is particularly reassuring given that the company does not pay a dividend, reinvesting its earnings back into growth and product development. For investors seeking more in-depth analysis, InvestingPro offers additional tips on OrthoPediatrics, available at their dedicated InvestingPro page.


OrthoPediatrics' strategic focus and operational milestones discussed during the investor day are complemented by these financial metrics, providing investors with a comprehensive view of the company's potential. With an eye on future growth and a strong foundation, OrthoPediatrics is an intriguing prospect for those invested in the medical device sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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