This company is a leader in medical implants and instruments for neurosurgery, tissue regeneration and wound care.
The company’s products are used in cranial and spinal procedures, peripheral nerve repair, small bone and joint injuries and the repair and reconstruction of soft tissue.
We believe Integra is positioned to benefit from a bounce-back in procedural volumes in 2018 following hurricane-related outages impacting 2017.
We also have a positive view of the October 2017 Codman acquisition, which added neurosurgery products and expanded overseas sales.
Integra trades at 20.6-times our 2018 EPS estimate, above the average of 19.1 for peers in our med-tech coverage universe.
However, we believe this premium is warranted given Integra’s strong sales growth, steady flow of new products, success in integrating acquisitions and rising margins.
As the smallest med-tech company in our coverage universe (by market cap), Integra is also moving the needle on revenue and EPS growth from its recent M&A deals.
David Toung is an analyst for Argus Research.
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