Piper Jaffray Starts K2M Group Holdings (KTWO) at Overweight

Piper Jaffray initiates coverage on K2M Group Holdings (NASDAQ: KTWO) with a Overweight rating and a price target of $26.00.

Analyst Matt Miksic comments, "We view KTWO as one of the most attractive medical device growth stories in our universe, having grown 17% over the past five quarters and targeting EBITDA breakeven in 2015. This small-cap high-growth spine player distinguishes itself not only by
sustained above-market growth, but also by operating from a core “anchor” position in the well-indicated, well-reimbursed and exclusive Complex Spine segment of the market. While growth stocks within our universe and more broadly across the market have underperformed over the past eight weeks, KTWO remains at a discount to the group, and we believe is poised for substantial outperformance as the company executes on its plan for growth and share gains. We are initiating coverage on KTWO with an Overweight rating and $26 target. At a 2.8x EV/Sales multiple on projected 2014 sales (38% discount to comps), we view the stock as very attractive."

For an analyst ratings summary and ratings history on K2M Group Holdings click here. For more ratings news on K2M Group Holdings click here.

Shares of K2M Group Holdings closed at $14.95 yesterday.

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