Needham & Company Downgrades Wright Medical (WMGI) to Hold

Needham & Company downgraded Wright Medical (NASDAQ: WMGI) from Buy to Hold.

Analyst Mike Matson comments, "We believe that execution risk will increase considerably after the TRNX deal closes and WMGI begins to integrate the two companies. In particular, we note that WMGI's US sales force is 80% direct while TRNX's US sales force is 45% direct and we believe this could make the integration challenging. WMGI has guided to $25-30M of revenue dissynergies (~4% of combined revenue) over 18 months but we think there is a risk that this proves too low. Additionally, we think there is a risk that WMGI's cost synergies target of $40-45M proves optimistic as well."

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 $27.47 yesterday.

You May Also Be Interested In

• GLJ Research Downgrades Fluence Energy Inc. (FLNC) to Hold
• Hims and Hers (HIMS) PT Lowered to $35 at Barclays
• Oppenheimer Reiterates Outperform Rating on NVIDIA (NVDA) Into EPS