Morgan Stanley research initiated medical device company Integra LifeSciences ( NASDAQ: IART ) on Monday with an equal-weight rating and a price target of $59, implying an 8.6% upside for the stock.
IART shares +1.4% to $55.10 in mid-day trading.
Princeton, N.J.-based IART offers a portfolio of products used in neurosurgery, along with tissue products used to treat burn wounds and hernia repair.
"Our Equal-weight rating is anchored by valuation, which we think reflects a balanced picture of the company's multiple growth opportunities and execution risks," said Morgan Stanley analyst Drew Ranieri in a research note.
IART in April announced Q1 results that beat revenue and earnings expectations and raised its FY 2022 organic growth guidance. Its Q2 report is due later this week on Wednesday.
"At this stage, we see Integra as a show-me story. Nearer term, the stock may continue to trade at a discount to the peer group (and historical valuation) until investors become more confident in the company's ability to deliver on the long-range plan and pipeline," Ranieri said.
Morgan Stanley's equal-weight rating compares to a Wall Street average rating and a Quant rating of hold.
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Morgan Stanley initiates Integra LifeSciences with equal-weight rating