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OrthoPediatrics price target lowered to $22 from $30 at Piper Sandler

Piper Sandler analyst Matt O’Brien lowered the firm’s price target on OrthoPediatrics (KIDS) to $22 from $30 and keeps an Overweight rating on the shares after the company preannounced Q3 revenue results that missed the firm and Street’s estimates by 6%/4%. The company also lowered full-year revenue and long-term growth rate expectations. While the update is frustrating, Piper believes management is “kitchen-sinking” its revenue outlook to get to a place it can meet and likely exceed in the future in order to start getting credit from a stock perspective. Consequently, the firm would take advantage of likely weakness in the stock.

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