Integer Holdings (ITGR, Financial) has encountered a shift in its stock price target from $150 to $140, according to Benchmark analyst Robert Wasserman. Despite maintaining a Buy rating, Wasserman has adjusted the price target due to decreased valuation metrics observed in comparable stocks, even though Integer delivered impressive first-quarter results.
In its financial outlook for fiscal year 2025, Integer has maintained its revenue projections in the range of $1.846 billion to $1.88 billion. However, the company’s adjusted earnings per share (EPS) forecast has been raised to between $6.15 and $6.51.
The revised price target takes into account the overall market conditions and comparable stock valuations, notwithstanding Integer's strong performance at the start of the year. Investors and market watchers will look to see how Integer continues to navigate through the fiscal year and if it meets or surpasses its updated financial guidance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Integer Holdings Corp (ITGR, Financial) is $147.88 with a high estimate of $158.00 and a low estimate of $133.00. The average target implies an upside of 21.75% from the current price of $121.46. More detailed estimate data can be found on the Integer Holdings Corp (ITGR) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Integer Holdings Corp's (ITGR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Integer Holdings Corp (ITGR, Financial) in one year is $109.25, suggesting a downside of 10.05% from the current price of $121.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Integer Holdings Corp (ITGR) Summary page.
ITGR Key Business Developments
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Integer Holdings Corp (ITGR, Financial) reported strong sales growth of 11% in the fourth quarter of 2024, both organically and on a reported basis.
- The company completed the divestiture of Electric Kim for $50 million, making it a pure play medical device company.
- Integer Holdings Corp (ITGR) ended the year with a leverage ratio of 2.6 times adjusted EBITDA, at the low end of their target range, providing capacity for strategic acquisitions.
- The company announced the acquisition of Precision Coating for $152 million and VSI Paroline for $28 million, enhancing their vertical integration and proprietary coating capabilities.
- Integer Holdings Corp (ITGR) expects continued above-market growth with expanding margins, projecting 8% to 10% sales growth and 11% to 16% adjusted operating income growth for 2025.
Negative Points
- The company faces uncertainty regarding tariffs, particularly in Mexico, which could impact operations and costs.
- Gross margin in the fourth quarter came in below expectations despite better revenue performance, attributed to inefficiencies during new product ramps.
- The exit from the portable medical product line is expected to result in a $29 million decline in sales by the end of 2025.
- Higher interest expenses and taxes impacted adjusted net income, with a noted increase in the adjusted effective tax rate due to new legislation.
- The strong performance of Integer Holdings Corp (ITGR) stock price has led to dilution in adjusted weighted average shares outstanding, affecting EPS.
