Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. demonstrated solid performance, particularly within its global orthopedics and spine segments, with notable growth metrics including 8% revenue growth in U.S. spinal fixation and 6% constant currency growth in global orthopedics. The company is capitalizing on market share expansion, evidenced by impressive advances in specific spine procedures such as lateral and minimally invasive lumbar, which saw growth rates of 24% and 18%, respectively. With ongoing expectations for the BGT business to grow at or above the market growth range of 2% to 3%, supported by cross-selling initiatives, the overall outlook for Orthofix remains positive.

Orthofix Medical Inc. reported a GAAP selling, general and administrative (SG&A) expense of 72.0% of revenue, significantly higher than the anticipated 66.7%, indicating operational inefficiencies relative to revenue generation. Additionally, while adjusted EBITDA exceeded expectations at $25.1 million, concerns arise from the disappointing revenue growth following a 7% increase in the previous quarter, which may reflect a trend of decelerating performance. The company's revenue estimate of approximately $820 million, although inclusive of M6 revenue, suggests that worrisome forecasts lie within management’s guidance range of $810 million to $814 million, implying potential challenges in maintaining growth momentum.