Oppenheimer Reiterates Outperform on K2M Group (KTWO)
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Oppenheimer reiterated an Outperform rating and $23.00 price target on K2M Group Holdings (NASDAQ: KTWO).
Analyst Steven Lichtman commented, "Recent developments for KTWO are supportive of our assumption of accelerating sales growth in 2017 to the mid-teens (from high-single-digit growth in 2016). Regarding distributor issues which have weighed on '16 international growth, we believe recent commentary from KTWO's Australian distributor LifeHealthcare (LHCASX) around improvement in its working capital position bodes well for KTWO (inventory de-stocking has been a '16 headwind and we assume recovery in '17). Also, KTWO recently completed a convert offering that meaningfully improves its liquidity position and provides more dry powder for growth investments. All together, with ’17 growth expected to accelerate, ’16 guidance reasonably set and KTWO still trading at a 50% discount to peers, we continue to like the set-up for the shares."
Shares of K2M Group Holdings closed at $17.12 yesterday.
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