Piper Sandler initiates Integer at 'overweight' on EPS growth prospects

Integer Holdings

24/02/2023 11:36

** Brokerage Piper Sandler initiates coverage for Integer
Holdings Corporation  ITGR.N  with 'overweight' rating 
    ** Says the medical device outsource manufacturer focuses on
products sold into some of the faster growth categories in
med-tech, which has resulted in delivering steady mid- to
upper-single-digit growth in recent years 
    ** Integer shares have traded essentially sideways over the
past 12 months as some supply issues have weighed on the stock,
but the annual revenue growth outlook here is attractive - Piper
    ** Brokerage adds that ITGR has a strong balance sheet and
free cash flow profile that allow to fold new, unique assets
into the portfolio; assigns co PT of $85
    ** Believes co can grow the top-line in the high single
digits over the next several years, with earnings per share
(EPS) expanding mid-teens annually
    ** Brokerage, however, also points out some investment
risks, including challenges in accessing raw materials, supplies
in the current environment, and if many customers decide to work
inventory down
    ** ITGR stock was down ~20% in 2022 
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))