Enovis: Discounted Valuation and Improving Profitability Support Buy Rating Despite Near-Term Growth Headwinds

William Blair analyst Brandon Vazquez has maintained their bullish stance on ENOV stock, giving a Buy rating yesterday.

Brandon Vazquez has given his Buy rating due to a combination of factors that, in his view, create an attractive risk–reward profile for Enovis despite near-term challenges. He notes that while management modestly trimmed revenue expectations for 2025 and implied a softer fourth quarter, they simultaneously raised the outlook for profitability, with higher adjusted EBITDA and EPS guidance supported by ongoing cost-efficiency initiatives. At the current valuation of roughly seven times his 2026 EBITDA estimate, Vazquez believes the stock price already reflects much of the growth deceleration and offers investors a favorable entry point. He expects that continued progress on driving operational efficiencies should support margins even in a more subdued demand environment.

At the segment level, Vazquez points out that organic growth remains solid overall, with reconstruction (Recon) continuing to expand at a high-single-digit pace, partially offsetting the more modest traction in the prevention and recovery (P&R) business. He acknowledges that the implied fourth-quarter EBITDA margin dip and slower top-line momentum could keep the shares under pressure in the short term, particularly as the market waits for clearer evidence of sustained execution. Even so, he argues that the combination of reasonable growth, improving profitability, and a discounted valuation warrants a positive stance. In his assessment, a few quarters of consistent delivery on growth and margin commitments could unlock meaningful upside from current levels, justifying his Buy recommendation.

In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $41.00 price target.