Canaccord Genuity has revised its price target for Enovis (ENOV, Financial), reducing it to $70 from the previous $75 while maintaining a Buy rating on the shares. This adjustment follows the release of the company's first-quarter financial results and its 10Q report. The unchanged valuation approach applied the same enterprise value-to-sales (EV/Sales) multiple as in Canaccord's last update.
Despite a marginally higher average valuation among comparable companies and an increase in the projected revenue for 2026, Canaccord has decided to apply a larger discount relative to the comparison group. This strategic decision reflects their cautious stance, ensuring that the investment remains attractive under their revised financial model.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Enovis Corp (ENOV, Financial) is $59.78 with a high estimate of $75.00 and a low estimate of $48.00. The average target implies an upside of 60.05% from the current price of $37.35. More detailed estimate data can be found on the Enovis Corp (ENOV) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Enovis Corp's (ENOV, Financial) average brokerage recommendation is currently 1.8, 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 Enovis Corp (ENOV, Financial) in one year is $71.27, suggesting a upside of 90.82% from the current price of $37.35. 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 Enovis Corp (ENOV) Summary page.
ENOV Key Business Developments
Release Date: May 08, 2025
- Revenue: $559 million, up 8% year-over-year and 10% on a constant currency basis.
- Adjusted EBITDA Margin: Increased by 160 basis points to 17.7%.
- Recon Business Growth: 13% growth with double-digit growth globally in hip, knee, and extremities.
- P&R Business Growth: 8% growth, mid-single digit when adjusted for selling days.
- Adjusted Gross Margin: 61.7%, an increase of 300 basis points year-over-year.
- Adjusted Earnings Per Share: $0.81, an increase of 62% versus prior year.
- Interest Expense: $9 million, down from $20 million in 2024.
- Effective Tax Rate: 23%, approximately 70 basis points higher than last year.
- 2025 Revenue Guidance: Increased by $30 million to $2.22 billion to $2.25 billion.
- 2025 Adjusted EBITDA Guidance: Lowered to $385 million to $395 million.
- 2025 Adjusted EPS Guidance: Updated to $2.95 to $3.10, down $0.15 from prior guidance.
- Tariff Exposure: $40 million expected in 2025, with plans to mitigate to $20 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Enovis Corp (ENOV, Financial) reported an 8% growth in sales for Q1 2025, with a 10% increase on a constant currency basis.
- The company achieved a 13% growth in its Recon business, with double-digit growth in both hip and knee segments.
- Adjusted EBITDA margins improved by 160 basis points, driven by favorable segment and product mix.
- The company launched several new products, including the augmented reverse glenoid system in shoulders and the nebula stem in hips, contributing to growth.
- Enovis Corp (ENOV) maintained a strong international performance, with a 14% growth outside the US, showcasing the strength of its global position.
Negative Points
- The company faces a $40 million tariff exposure for 2025, with plans to mitigate it to $20 million, impacting profitability.
- Enovis Corp (ENOV) lowered its adjusted EBITDA guidance by $20 million due to expected tariff impacts in the second half of 2025.
- The effective tax rate increased by 70 basis points compared to the previous year.
- Interest expense for the quarter was $9 million, although reduced from $20 million in 2024.
- The company anticipates a slight downward trend in pricing within the Recon market, which could affect future margins.
