Piper Jaffray Neutral On Integra LifeSciences

Piper Jaffray has a Neutral rating and a $56 price target on shares of Integra LifeSciences IART. In a note to clients, Piper Jaffray writes, "We view Integra's debt restructuring as a positive, reducing the company's cost of capital and improving its access to financing. We also view the recent acquisition of SeaSpine as a timely expansion opportunity for the company's emerging spine business, expanding its product portfolio and distribution footprint, executed at an attractive valuation. We continue to see management returning to its historical strategy of 3-4 tuck-in acquisitions annually, typically in the range of $20-50 mil in revenues, historically valued at 1-2.5x revenues and 5-9x EBITDA, as articulated by the company many times. Despite the recent slowdown in spine market volumes, we continue to view spine and orthobiologics as important growth drivers for Integra over the next 12-24 months, and we expect SeaSpine to contribute in this regard. We maintain our Neutral rating on IART and $56 PT for now." Shares of IART gained 32 cents yesterday to close at $48.00.