J.P.Morgan upgrades Bioventus to 'neutral' on improved growth visibility, execution

Bioventus

17/12/2024 16:52

** Brokerage J.P.Morgan upgrades medical product maker
Bioventus  BVS.O  to "neutral" from "underweight", raises PT to
$13 from $12
    ** Notes better visibility into co's growth; says co has
taken steps in the right direction to stabilize and restore
growth
    ** Says 2024 marked return to stability for co, with
knee-therapy-related headwinds now lapped and fully in rearview
and "pockets of strength" in areas including Ultrasonics
    ** Expects deals, while likely off the table for co in near
to midterm future, could get investors confident in driving
upside to numbers
    ** Says M&A has historically been a key factor in co's
growth algorithm given its limited organic pipeline
    ** Also says the significant amount of debt in co's balance
sheet could limit more strategic uses of capital
    ** Two of three brokerages rate the stock "buy", and one
"hold"; with a median PT of $15
    ** Up to last close, stock has gained 112% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))