Breaking News: Piper Sandler Reaffirms Overweight Rating on OrthoPediatrics Corp. (NASDAQ:), Predicts Potential Upside to $200 Million Revenue
In a recent evaluation, Piper Sandler has reaffirmed its Overweight rating on OrthoPediatrics Corp. (NASDAQ:), setting a steady price target of $44.00. The firm's positive outlook stems from OrthoPediatrics' strategic expansion in the pediatric specialty bracing market, particularly through its acquisition of Boston O&P last year.
This move has not only expanded OrthoPediatrics' product portfolio but has also added clinics in the Northeastern U.S., enhancing patient services. Piper Sandler views this acquisition as a significant step into an approximately $800 million domestic market opportunity, projecting substantial market share growth for OrthoPediatrics in the future.
The firm suggests that OrthoPediatrics could potentially reach $200 million in revenue with strong operating margins and free cash flow. This business expansion is expected to strengthen OrthoPediatrics' competitive edge in the specialty bracing segment and benefit its implant franchise.
Recent growth numbers for Q2 2024 show a 52% increase in the number of children served and a 33% rise in revenue, reaching a record $52.8 million. The company remains committed to its full-year 2024 revenue guidance of $200 million to $203 million.
Furthermore, OrthoPediatrics has revealed its future growth strategies, including new product launches and international expansion. With a stock repurchase program of up to $5 million and a projected $8-9 million in adjusted EBITDA in 2024, the company aims to achieve cash flow breakeven by 2026.
In anticipation of the company's first Analyst & Investor Event, BTIG has reaffirmed its Buy rating for OrthoPediatrics. This event is expected to provide clarity on the company's long-term growth trajectory and address key investor questions.
In conclusion, OrthoPediatrics' strategic acquisitions and growth projections indicate a promising future for the company, with potential upside in revenue and market share. Investors should keep an eye on the company's upcoming developments as they could impact their investment decisions and financial outcomes.
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