Strong Market Position and Growth Potential Justify Buy Rating for OrthoPediatrics

OrthoPediatrics (KIDS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Ryan Zimmerman from BTIG reiterated a Buy rating on the stock and has a $38.00 price target.

Ryan Zimmerman has given his Buy rating due to a combination of factors that highlight OrthoPediatrics’ strong market position and growth potential. The feedback from the Pediatric Orthopaedic Society of North America (POSNA) Annual Meeting indicates that procedural volumes are robust, with schedules booked through the Fall, suggesting a healthy demand for the company’s products. Additionally, physicians have expressed positive feedback about KIDS’ product offerings, noting their high utilization rates and the company’s commitment to developing specialized solutions for the pediatric orthopedic market.
Furthermore, distributor insights reveal that the sales environment remains favorable, with strong volumes and efficient asset utilization. The distributor also emphasized key products like ApiFix and the OPSB portfolio, which are expected to drive further growth. From a valuation perspective, KIDS’ shares are trading at a lower multiple compared to high-growth peers, and with a projected revenue growth rate of approximately 19%, there is potential for multiple expansion. These factors collectively support Zimmerman’s Buy rating and the $38 price target for the stock.

In another report released on May 8, Lake Street also reiterated a Buy rating on the stock with a $37.00 price target.