Designer and custom manufacturer of instruments for the medical industry UFP Technologies, Inc. (UFPT) recently announced the acquisition of class III medical device packaging maker, Contech Medical. The terms of the deal were not disclosed.
Following the news, shares of the company declined 1.1% to close at $63.34 in Wednesday’s trading session.
With annual sales of about $18 million, Contech Medical is one of the foremost names in the medical device packaging space, with specific expertise in designing, developing, and manufacturing class III medical devices, primarily for catheters and guidewires.
CEO of UFP Technologies, R. Jeffrey Bailly, said, “Contech is an excellent strategic and cultural fit that will continue to make us more valuable to our growing medical customer base. Today, around 70% of Contech’s customers are our customers too. Because we provide complementary – not competing – products and services, we will be able to address customer needs in a more comprehensive way.” (See Insiders’ Hot Stocks on TipRanks)
The stock has a Moderate Buy consensus rating based on 1 Buy. Sidoti analyst Anja Soderstrom reiterated a Buy rating on the stock and raised the price target from $65 to $67, which implies upside potential of 5.8% from current levels.
UFP Technologies scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 60.4% over the past year.