UFP Technologies initiated with a Market Perform at Raymond James

Raymond James initiated coverage of UFP Technologies (UFPT) with a Market Perform rating and no price target The firm believes concerns over the risk of share loss of the Intuitive Surgical (ISRG) drape business may be overdone. However, the near-term trajectories from UFP’s key customer are unlikely to shift investor sentiment, the analyst tells investors in a research note. Raymond James likes the positioning of the business longer-term and are not overly concerned about the Intuitive relationship, but thinks there could be “choppiness” in coming quarters as lapping inventory rebuilding efforts potentially “feeds concerns on this front, even if unfounded.”