Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. reported solid performance across its segments, with the global orthopedics segment achieving 6% constant currency growth and an impressive 8% revenue increase in U.S. spinal fixation, accompanied by a 10% growth in procedures this quarter. Additionally, significant market share capture was noted within the spine segment, particularly in lateral (24%), minimally invasive lumbar (18%), and both posterior cervical and anterior lumbar (17%) categories. The company anticipates ongoing growth in its bone growth and healing therapies, supported by promising cross-selling opportunities and a focus on the BGT fracture segment, which also experienced a 4% increase.

Orthofix Medical Inc. reported GAAP SG&A expenses at 72% of revenue, significantly higher than the expected 66.7%, indicating operational inefficiencies that may hinder profitability. Additionally, despite a stronger-than-anticipated adjusted EBITDA of $25.1 million relative to the $21.0 million estimate, the overall revenue forecast of approximately $820 million raises concerns, particularly if future performance deviates from management’s pro forma guidance range of $810 million to $814 million. The combination of high operational expenses, potential misalignment in cash flow modeling, and uncertainties in revenue projections suggest fundamental weaknesses that contribute to a negative outlook for the company’s stock.