J.P. Morgan Reiterates Neutral on Wright Medical Group (WMGI)

J.P. Morgan is out with its report on Wright Medical Group WMGI, reiterating Neutral. In a note to clients, J.P. Morgan writes, "The Wright business model has historically targeted 100-150bps of annual operating margin expansion, but with top-line growth in the low to mid single digits, leverage is harder to come by. We continue to view the Extremities franchise as attractive, with 10%+ sales growth forecast through 2013; however, absent a rebound in volumes for the large joint markets (and WMGI's business in turn), total top-line growth remains compressed. As such, we forecast bottom-line growth at Wright in the high single digits, below its mid-large cap MedTech peers. We reiterate our Neutral rating." J.P. Morgan has a $17 PT on WMGI. Shares of WMGI closed Tuesday at $15.32.