JPM, Citi downgrade Integra LifeSciences on Q2 outlook cut after product recall

Integra LifeSciences Holdings

24/05/2023 12:58

** Medical equipment maker Integra LifeSciences Holdings
Corp  IART.O  down 2.4% at $39.51 premarket after J.P.Morgan and
Citigroup downgrade stock following Q2 rev, profit forecast cut
    ** IART set to extend 20% tumble on Tuesday and hit an over
three-year low should losses hold
    ** Co initiated a voluntary global recall of all products
manufactured at its Boston, Massachusetts facility distributed
between March 1, 2018 and May 22, 2023
    ** JPM thinks investors should be prepared for a potentially
prolonged recovery, given the quality issues at IART; forecasts
co recovering ~80% of sales in 2024
    ** "We’re downgrading shares to Underweight given the
disappointing execution we’ve seen in recent history and
uncertainty in the path toward improved top-line growth" - JPM
    ** JPM cuts PT to $43, a ~21.8% downside from median PT of
$55, according to Refinitiv data
    ** Citigroup expects further outlook downgrades; brokerage
cuts IART to "sell" from "neutral", cuts PT to $39
    ** Three brokerages rate the stock 'buy' or higher, seven
'hold' and four 'sell' or lower
    ** IART closed down at $40.48 on Tuesday, down ~27% YTD as
of last close

 (Reporting by Reshma Rockie George in Bengaluru)
 ((Reshma.George@thomsonreuters.com))