2023-07-12 15:57:55 ET
Jefferies has upgraded Integra LifeSciences ( NASDAQ: IART ) to buy, stating that the stock has been oversold in the wake of a May recall for products manufactured at its Boston facility.
The investment bank said it believes the worst case scenario has been "baked in" to the shares, which are at "historically low" valuations. It added that the company's expected Q2 earnings release on July 27 could shed further light on recovery scenarios.
Jefferies said it was also upgrading the stock based on the company's ability to substitute for lost products and potentially restart production in the latter half of the year.
Integra issued a recall in May for products made at its Boston plant over concerns they contained higher levels of endotoxins than were permitted under certain specifications. The recall included products marketed under the SurgiMend, PriMatrix, Revize and TissueMend brands.
In a filing made in late May , Integra said the recalled products accounted for around 5% of its total revenue. It expects to release updated financial guidance during its Q2 earnings conference call.
More on Integra:
- Integra LifeSciences appoints Lea Daniels Knight as CFO
- Integra LifeSciences: Paring To Hold On Recall Uncertainties
- Integra LifeSciences cut to underweight at JP Morgan on recall
- Integra LifeSciences downgraded at Citi on recall, lowered guidance
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Jefferies ups Integra LifeSciences to buy, says stock oversold after recall