Sunday, December 30, 2012

Integra: JP Morgan Says “Buy,” $46 Target

Shares of $1.1 billion (market cap) medical device maker Integra LifeSciences Holdings (IART) are up $1.97, or 5%, at $38.80 after JP Morgan-Chase analyst Taylor Harris raised his rating on the stock to “Overweight” from “Neutral” and raised his price target to $46 from $37.

Management spooked investors the last 12 months by repeatedly lowering its forecast, writes Harris, causing Street EPS estimates for this year to fall in that time from $2.88 to just 57 cents per share. But that latest estimate looks reasonable, writes Harris, and the company has a good orthopedics business that can produce 7% to 8% revenue growth for the company. The stock has a free cash flow yield of 8.6%, which is cheaper than the 7% or so of peers, he writes.

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