Integra Lifesciences Faces Revenue Shortfall and Lowered Outlook Amid Supply Chain Challenges

Analyst Travis Steed of Bank of America Securities reiterated a Sell rating on Integra Lifesciences, with a price target of $14.00.

Travis Steed has given his Sell rating due to a combination of factors affecting Integra Lifesciences. The company’s third-quarter revenue fell short of expectations, with a reported $402 million, which is $12 million less than anticipated. This shortfall was primarily due to supply chain disruptions in the CSS business and inadequate safety stock levels, although these issues have been addressed and operations have resumed.
Furthermore, despite some positive aspects such as a better-than-expected gross margin and tax rate, the company has lowered its outlook for the remainder of the year. The revised projections for the fourth quarter and beyond indicate lower revenue and organic growth than previously expected, which suggests potential challenges in execution. As a result, Steed maintains a cautious stance, reiterating an Underperform rating until there is evidence of improved performance.