ICU Medical initiated with a Hold at Needham

Needham initiated coverage of ICU Medical with a Hold rating and no price target. The analyst thinks ICU’s “currently depressed earnings” will recover over the next few years, but says low-single-digit normalized revenue growth will limit the company’s earnings growth to the mid- to high-single digits. On a positive note, a pump upgrade cycle, pump share gains, new product launches and divestitures might accelerate ICU’s organic revenue and earnings growth, the analyst tells investors in a research note. The firm believes the stock’s currently multiple is a fair valuation considering the company’s growth profile.