Leerink Partners Cuts Price Target on Wright Medical Group (WMGI) Following 3Q

Leerink Partners maintained an Outperform rating on Wright Medical Group (NASDAQ: WMGI), and cut the price target to $25.00 (from $27.00), following the company's 3Q earnings report. Revenue from continuing operations of $157.3M was about in-line with consensus' $157.7M. EBITDA of $5.7M beat the consensus estimate of $3M.

Analyst Richard Newitter commented, "WMGI's 3Q saw another solid EBITDA beat (and guidance raise) on in-line sales, and WMGI reiterated its full-year rev. outlook (at the midpoint of narrowed guidance). Moreover, a final metal-on-metal (MoM) litigation settlement was reached--in-line with the range mgmt had previously disclosed in 2Q--which should help remove a stock overhang. We reiterate our OP rating with a view that: (1) WMGI/TRNX remains an attractive mid-cap growth extremities/ biologics asset with broad reach across three of the fastest-growing ortho markets (shoulder, foot & ankle, biologics) with ramping/inflecting EBITDA margin; (2) upper/lower extremities end-market growth remains healthy & WMGI's share gain prospects within them is strong. Our PT goes to $25 (vs. $27) based on recent multiple compression for the group."

For an analyst ratings summary and ratings history on Wright Medical click here. For more ratings news on Wright Medical click here.

Shares of Wright Medical closed at $20.78 yesterday.

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