Treace Medical downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Treace Medical to Neutral from Overweight with a price target of $8, down from $15. The company reported a “disappointing” update as a good quarter came alongside a significant cut to guidance due to growing competitive headwinds, the analyst tells investors in a research note. The firm says the guidance still implies a meaningful ramp over the back half of the year, which calls into question how conservative this outlook truly is, especially with Treace seeing some stickiness when surgeons switch over to competitive products. While Treace is launching its own 3D MIS osteotomy products later this year, it remains to be determined how much share loss the company will be able to recapture, adds JPMorgan.