Benchmark has increased the price target for Integer Holdings (NYSE: NYSE:ITGR) ahead of the company's third-quarter earnings report.
The new target is set at $140, up from the previous figure of $130, while the firm retains a Buy rating on the stock.
Integer Holdings, a medical device outsource manufacturer, is scheduled to release its third-quarter financial results on Thursday, October 24, before the market opens. Benchmark forecasts the company to report total sales of $445.5 million for the quarter, indicating a 10.1% increase compared to the same period last year. The projected sales exceed the consensus estimate of $440.6 million, which would represent an 8.8% growth.
The analyst from Benchmark also anticipates adjusted non-GAAP earnings per share (EPS) for Integer Holdings to come in at $1.38, which would be an improvement from the $1.27 per share reported in the third quarter of 2023. This estimate is slightly higher than the consensus estimate of $1.36 for adjusted EPS.
The positive outlook on Integer Holdings is supported by the expected year-over-year growth in both revenue and earnings. The company's performance in the upcoming earnings report will be closely watched by investors, as it may influence the stock's movement in the market.
In other recent news, Integer Holdings has seen a series of positive analyst adjustments. KeyBanc has raised the price target for Integer Holdings to $144, citing a sustainable growth outlook for the company into 2024 and 2025, supported by consistent market growth, strategic investments, and enhanced customer relationships.
Truist Securities also increased its price target to $145, maintaining a Buy rating on the stock. This follows Integer's recent sale of its Electrochem division to Ultralife Corporation for $50 million, a strategic decision believed to align with Integer's growth strategy and provide additional liquidity for future growth opportunities.
Integer Holdings has also completed two significant facility expansions in Ireland, demonstrating its commitment to enhancing its manufacturing capabilities. The company reported Q2 sales of $436 million, a 9% increase year-over-year, but earnings per share fell short of estimates at $0.88. Despite this, the company reiterated its full-year 2024 revenue guidance, projecting between $1,735 million and $1,770 million.
InvestingPro Insights
Integer Holdings' strong market position is reflected in its recent financial performance and stock market valuation. According to InvestingPro data, the company's revenue growth stands at 11.71% for the last twelve months as of Q2 2024, aligning with Benchmark's positive outlook on the company's sales growth. This robust revenue growth is complemented by a healthy EBITDA growth of 22.28% over the same period, indicating improved operational efficiency.
InvestingPro Tips highlight that Integer Holdings is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.94. This suggests that the stock may be undervalued considering its growth prospects, which supports Benchmark's decision to raise the price target. Additionally, the company's stock has shown a remarkable 81.15% price total return over the past year, reflecting strong investor confidence.
It's worth noting that Integer Holdings is trading near its 52-week high, with its current price at 97.68% of the 52-week high. This performance aligns with Benchmark's bullish stance and the increased price target. For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Integer Holdings, providing a deeper understanding of the company's financial health and market position.
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