Orthofix: Turnaround Fundamentals Improving but Revenue Visibility Delays Re-Rating, Justifying Hold and $14 Target

, an analyst from TD Cowen, has initiated a new Hold rating on Orthofix (OFIX).

TD Cowen has given his Hold rating due to a combination of factors that balance Orthofix’s improving fundamentals against lingering growth uncertainties. The firm acknowledges that new management has materially improved the company’s financial profile by tightening spending, prioritizing cash-generating initiatives, and strengthening the balance sheet. Profitability trends, including the trajectory in the Spine Fixation segment and the pathway toward mid-teens EBITDA with strong cash flow, are viewed favorably and support the turnaround narrative. At the same time, TD Cowen believes that the company can still meet attractive earnings and cash flow targets even if it falls short of its 2025–2027 revenue ambitions.
However, TD Cowen sees limited visibility into a meaningful acceleration in revenue growth before late 2026, which creates risk around the longer-term sales outlook and the credibility of the 2027 revenue goals. While upcoming product launches in Orthopedics, Spine (including 7D-related pull-through), and an expanded Bone Growth Therapy portfolio could support above-market growth over time, the firm expects the clearest evidence of a durable growth inflection to emerge only as the company exits 2026 and moves into 2027. Given that Orthofix’s valuation multiple is currently depressed, TD Cowen views proof of sustained top-line acceleration as a necessary catalyst for a substantial re-rating of the stock. Until that revenue momentum becomes more visible, the risk/reward profile is seen as balanced, warranting a Hold rating with a $14 price target based on a 6x 2026E EV/EBITDA framework.

In another report released on January 25, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $13.50 price target.