JPMorgan Downgrades Treace Medical Concepts Inc (TMCI) to Underweight

JPMorgan analyst Lilia-Celine B Lozada downgraded Treace Medical Concepts Inc (NASDAQ: TMCI) from Neutral to Underweight with a price target of $5.00 (from $8.00).

The analyst comments: "Treace reported a disappointing update after the close on Thursday as the better than expected quarter was overshadowed by a reset to guidance as softness in the foot and ankle market, a shift away from Lapiplasty to MIS osteotomy products, and a mix headwind from new launches are set to pressure revenues in the near-term. Revenue of $50.2M (+11%) came in slightly ahead of the Street and saw good volume growth, though this was driven entirely by a 1x distributor pull forward in sales worth ~$3M. Along with the aforementioned headwinds, this is set to pressure the balance of 2025, with guidance now moving to $211-213M, a decline from $224-230M prior. Despite good volume growth and tailwinds from new products in 2026, this will be offset by meaningful mix headwinds as these new MIS osteotomy products carry a materially lower ASP, clouding Treace’s ability to grow revenues in the near-term. With multiple headwinds pressuring near-term growth and no clear timing of resolution, we’re downgrading shares to Underweight until we have better visibility into go-forward growth and see improvements in execution."

For an analyst ratings summary and ratings history on Treace Medical Concepts Inc click here. For more ratings news on Treace Medical Concepts Inc click here.

Shares of Treace Medical Concepts Inc closed at $6.23 yesterday.

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