On Wednesday, Truist Securities adjusted their financial outlook for shares of Integer Holdings (NYSE:ITGR), raising the price target from $147.00 to $163.00, while maintaining a "Buy" rating on the stock. Currently trading at $141, the company has seen an impressive 50.8% return over the past year, according to InvestingPro data. The adjustment follows the divestiture of Integer's Electrochem business, which was sold to Ultralife on October 31.
The sale of the Electrochem division has led to changes in Integer's financial modeling. With a strong financial health score rated as "GREAT" by InvestingPro, Integer Holdings maintains robust fundamentals, including a healthy current ratio of 3.28 and revenue growth of 12.4% in the last twelve months.
Truist Securities has updated its historical revenue and profit figures for Integer Holdings from the first quarter of 2023 through the second quarter of 2024, as well as the full year 2024, to align with the continuing operations profile. This update was based on restatements provided during the third-quarter 2024 earnings call.
The analyst from Truist Securities stated that the forward revenue and EPS estimates for the fourth quarter of 2024, as well as for the years 2025 to 2026, remain unchanged. This is because the Electrochem business had already been accounted for as discontinued operations in their future projections.
The update to the financial model reflects the removal of the Electrochem business from Integer's historical performance, as the company moves forward without this segment. Integer Holdings' earnings and revenue from the first half of 2024 have been reconciled with the company's continuing operations following the sale.
In summary, the revised price target for Integer Holdings takes into account the recent divestiture and the associated financial restatements. Truist Securities has reiterated their "Buy" rating, signaling confidence in Integer's ongoing business operations post-sale.
Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. Subscribers can access 8 additional ProTips and comprehensive financial metrics through InvestingPro's detailed research reports.
In other recent news, Integer Holdings has shown promising growth in its third-quarter results, with earnings per share exceeding expectations at $1.43, surpassing both CL King's projection of $1.39 and the consensus estimate of $1.36. However, the company's revenue of $431.4 million fell short of anticipated figures.
Piper Sandler and CL King have responded to these results by increasing their price targets for Integer Holdings, maintaining an Overweight and Buy rating respectively.
Recent developments include Integer Holdings updating its full-year 2024 forecast, now expecting revenues to range between $1,707 million and $1,727 million, indicating an increase of 10% to 11%. This is a slight uptick from the previous forecast of 9% to 11% growth. The revised outlook includes an anticipated 7% to 8% organic growth.
Moreover, Integer Holdings announced key leadership changes and the divestiture of the Electrochem business. The company's adjusted EBITDA is forecasted between $358 million and $368 million, an 18% to 21% year-over-year rise. Integer expects accelerated organic growth in Q4, especially in the Cardio & Vascular and Neuromodulation segments. These actions and expectations reflect the company's strategic approach to navigate the current market conditions.
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