Needham & Company Upgrades Wright Medical (WMGI) to Buy

Needham & Company upgraded Wright Medical (NASDAQ: WMGI) from Hold to Buy with a price target of $22.00.

Analyst Mike Matson commented, "We are upgrading WMGI to Buy from Hold since 1) we expect a significant product cycle over the next two years to drive accelerating revenue growth, 2) we think that consensus 2016 revenue estimates appear conservative, and 3) we believe that concerns over metal-on-metal product liability suits are overdone. WMGI shares are down 28% year-to-date (YTD) vs. our coverage universe which is down by an average of 15% YTD and the Russell 2000 index which is down 11% YTD. And WMGI shares are trading at a 2016E EV/sales of 3.4x, which is just above its small/mid-cap growth peers trading at 3.2x."

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 $17.31 yesterday.

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