Integra LifeSciences (IART) has enjoyed a good run since the fall of 2020, rising more than 40% and handily beating the broader med-tech space. It seems as though investors have really liked the company’s decision to exit orthopedics and reallocate capital toward regenerative medicine, and that makes sense as it should drive better top-line growth, margins, and FCF generation.
While I saw some value in the shares back in September, the run since then has moved them to overvalued territory relative to the likely growth and margins. I don’t discount the possibility of outperformance, as Integra has shown good internal product development capabilities, but today’s valuation requires a level of growth (low double-digits) that I think is unlikely to develop.
Read more here:
Integra LifeSciences Shifts Toward A Better Growth/Margin Mix And Looks To Procedure Normalization
No comments:
Post a Comment