OFIX - Orthofix Medical upgraded at Stifel on growth trajectory and margin expansion

The shares of medical device and biologics company, Orthofix Medical (OFIX +7.4%), has risen sharply after Stifel upgraded it to Buy from Hold, citing the prospects in growth and margins. The price target raised to $45 from $41 per share implies a premium of ~34% to the last close. When the firm initiated the coverage on Orthofix (NASDAQ:OFIX) about two years ago, it outlined three key factors to become more positive on the stock: namely, “clinical/regulatory/commercial execution, new product adoption, and base business stability,” the analyst Mathew Blackman recalls. Even in the face of COVID-19, the company has made “significant progress” across all the targets and is well-positioned to maintain at least mid-single-digit revenue growth with margin expansion, he argued. Additionally, given the sold balance sheet and depressed valuation, “we see a clear path to multiple expansion,” Blackman wrote, noting the downside protection amid current uncertainty related to the pandemic,

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Orthofix Medical upgraded at Stifel on growth trajectory and margin expansion