Piper Jaffray Starts SeaSpine Holdings (SPNE) at Overweight

Piper Jaffray initiates coverage on SeaSpine Holdings (NASDAQ: SPNE) with a Overweight rating and a price target of $24.00. SeaSpine is a spin-off from Integra LifeSciences Holdings Corporation (NASDAQ: IART).

Analyst Matt O'Brien commented, "We are initiating coverage of SeaSpine with an Overweight rating and $24 PT, which is based on a 1.6x our ’16 revenue target and represents a slight premium to a competitor such as ATEC but below the faster growth spine names like NUVA and GMED. SPNE sells biologic and hardware products primarily for spinal fusion procedures. With a 6% presence in all cases performed domestically on the biologics side of the business, there is considerable low-hanging fruit within hardware, where SPNE only has 1.5% share. We believe the company’s new products and strong balance sheet post-spin will allow it to properly rollout these devices and indeed capture share on the hardware side. Our confidence in this outlook is emboldened by the presence of new CEO Keith Valentine, who successfully helped grow NuVasive from a start-up to a company expected to generate more than $800M in sales only 15 years later."

For an analyst ratings summary and ratings history on SeaSpine Holdings click here. For more ratings news on SeaSpine Holdings click here.

Shares of SeaSpine Holdings closed at $19.11 yesterday.

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