OrthoPediatrics: Piper Sandler expects spine business to flourish, hikes PT

Orthopediatrics

06/04/2021 10:59

** Piper Sandler says medical device co OrthoPediatrics Corp
 KIDS.O  is likely to grab a large share of pediatric scoliosis
market in near term, thanks to its strong pipeline
    ** Raises PT to $62 from $55, implying an upside of about
27% to stock's last close
    ** Brokerage is optimistic about strong clinician feedback
for co's minimally invasive spinal curve correction device,
which it obtained through acquisition of ApiFix Ltd last year 
    ** Believes the combination of the ApiFix device and co's
RESPONSE system to treat spinal deformity can tap a large
portion of the scoliosis market and drive upside to estimates
    ** "... we clearly believe Orthopediatrics' spine business
is on a course to generate significant value in both the near
and long term that isn't fully  factored  in  by  the  Street,"
says brokerage
    ** Piper Sandler, which rates the stock "overweight",
estimates the size of the scoliosis market pursued by KIDS to be
about $2 bln annually
    ** Current avg recommendation of 7 analysts on stock is
"buy"; median PT is $56 - Refinitiv data
    ** KIDS had gained 18.5% YTD, as of its last close

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))