Piper Sandler Cuts Price Target For Integra Lifesciences As It Divests Wound Care Portfolio

Piper Sandler lowered the Integra Lifesciences Holdings Corp IART to $55 from $66 and kept a Neutral rating on the shares.
Yesterday the company reported Q2 sales of $397.8 million, +4.8% on an organic basis, beating the consensus of $395.27 million and EPS of $0.82, better than the consensus of $0.80.
The analyst said the Q2 results "modestly" beat his top-line and bottom-line estimates on continued procedure recovery.
He notes that initiatives to increase efficiency and price capture are benefiting Integra despite supply chain and macro headwinds.
O'Brien noted that many growth drivers are in the early stages in relatively low-growth end markets.
Integra agreed to divest its Traditional Wound Care Business to Gentell for $28.8 million.
The company tightened its organic growth expectations from 3.8% - 5.2% to 4.0% - 5.2%, reflecting the uncertainty in global markets and continuing supply constraints.
It forecasts FY22 revenue of $1.56 billion - $1.57 billion, down from $1.58 billion - $1.60 billion, compared to the consensus of $1.59 billion.
It sees FY22 EPS of $3.21 - $3.29, reflecting the planned divestiture of the wound care business.
For Q3, IART expects sales of $383 million - $391 million and adjusted EPS of $0.78 - $0.82, versus the consensus of $398.66 million and $0.84.
Price Action: IART shares closed 1.12% lower at $56.53 on Wednesday.

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