Citi analyst Joanne Wuensch has maintained their bearish stance on IART stock, giving a Sell rating yesterday.
Joanne Wuensch has given her Sell rating due to a combination of factors relating to Integra Lifesciences’ recent operations and financial outcomes.
The disappointing 3Q23 results of the company, which fell short of expectations, primarily drive Wuensch’s rating. This underachievement was particularly tied to a recall at the company’s Boston plant which led to sales of $382.4M, lower than the Street’s predicted $387.2M. The recall also negatively impacted the gross margins, reducing them from 66.8% to 64.6% year on year, which led to a decline in the EPS to $0.76, another miss from the Street’s expected $0.76.
These results prompted the company’s management to lower the revenue guidance for 2023, exacerbating Wuensch’s concerns. Although the company’s business outside Boston showed resilience, Wuensch expressed uncertainty over the company’s ability to bounce back in the market and regain its share, considering the significant improvements needed in the Boston manufacturing department. This is the main reason for Wuensch maintaining a Sell rating on Integra Lifesciences.
In another report released yesterday, Bank of America Securities also reiterated a Sell rating on the stock with a $40.00 price target.
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Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IART in relation to earlier this year.
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Integra Lifesciences (IART) Company Description:
Integra LifeSciences Holdings Corp. engages in the manufacture and sale of medical instruments, devices, and equipment. It operates through the Codman Specialty Surgical, and Orthopedics and Tissue Technologies segments. The Codman Specialty Surgical segment refers to the company’s neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and precision tools and instruments business, which sells instrument patterns and surgical and lighting products to hospitals, surgery centers, and dental, podiatry, and veterinary offices. The Orthopedics and Tissue Technologies segment includes offerings such as skin and wound repair, bone and joint fixation implants in the upper and lower extremities, bone grafts, and nerve and tendon repair. The company was founded by Richard E. Caruso in 1989 and is headquartered in Princeton, NJ.
Read More on IART:
- Integra LifeSciences Reports Third Quarter 2023 Financial Results
- IART Upcoming Earnings Report: What to Expect?
- Integra LifeSciences price target lowered to $41 from $48 at Truist
- Integra LifeSciences to Host Third Quarter 2023 Financial Results Conference Call on October 25, 2023
- Integra LifeSciences to Present at the 2023 Wells Fargo Healthcare Conference
