In a report released yesterday, Caitlin Cronin from Canaccord Genuity maintained a Buy rating on Orthofix (OFIX – Research Report), with a price target of $24.00.
Caitlin Cronin has given her Buy rating due to a combination of factors that highlight Orthofix’s strategic focus and financial performance. The company reported strong revenue and adjusted EBITDA growth in the fourth quarter, with significant increases in its US Spine Fixation and Orthopedics segments. This performance exceeded expectations and demonstrated the company’s ability to drive commercial momentum across its business segments.
Cronin also notes Orthofix’s strategic decision to exit non-core products and discontinue the M6 motion preservation product line, which has allowed the company to raise its long-term growth expectations. These moves are part of a broader strategy to focus on profitable growth, improve cash generation, and expand margins. Additionally, Orthofix’s current valuation is considered attractive, trading below the averages of comparable small-cap and spine companies. These factors collectively support the Buy rating and the $24 price target.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $22.00 price target.