ITGR - Integer: Price/Value Equation Remains Neutral - Reiterate Hold

2024-06-02 16:14:50 ET

Summary

• Integer Holdings Corporation's stock has surged nearly 60% from my previous hold call.
• The company's Q1 FY'24 earnings showed strong growth, with sales up 10% YoY and operating income up 26% YoY.
• Despite the growth, I still rate ITGR as a hold on valuation grounds.

Investment Summary

Since my last report on Integer Holdings Corporation (NYSE:ITGR), the stock has experienced a substantial re-rating, surging nearly 60% from my previous hold call. This impressive growth has propelled the stock from a modest base of around $90/share to $121/share as I write.

Figure 1.

There is no denying investors have bid up the company’s stock price and earnings multiples since the last publication. My questions now are threefold: 1) What may I have missed? 2) What’s driving the change in market value? and 3) Has the market got it right?...

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