Analyst Michael Matson of Needham maintained a Buy rating on OrthoPediatrics, retaining the price target of $42.00.
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Michael Matson’s rating is based on several key considerations. Despite OrthoPediatrics’ recent revenue guidance being slightly below consensus, the company has demonstrated strong year-over-year growth in both domestic and international markets. The management’s reaffirmation of adjusted EBITDA and their expectation for cash flow break-even by 2026 indicate financial stability and strategic planning.
Additionally, the company’s Specialty Bracing business and comprehensive portfolio are seen as strong drivers for future performance. Matson also notes the potential for OrthoPediatrics to be an attractive acquisition target for larger orthopedic companies, which could provide significant upside. These factors collectively support the Buy rating, reflecting confidence in the company’s long-term growth prospects.