Piper Jaffray Reiterates PT Of $18 and Overweight On Wright Medical (WMGI)

Piper Jaffray reiterated its Overweight rating and price target of $18 on Wright Medical WMGI in a research report published today. In the report, Piper Jaffray stressed some compliance problems, however. The report states, "Wright's preliminary results look solid, in line with management's comments a few weeks ago, however the pre-release came with more management departures which will likely leave investors wondering what exactly is going on at the company. Our view, based on what has been disclosed is that there were some mis-steps in terms of compliance, and the board took a number of steps to rectify and strengthen the company's compliance infrastructure. Given the abrupt changes in management and the company deferred prosecution agreement (DPA) in force with the DOJ, there are clearly risks of further fall-out. However, we believe the most likely outcome is that the DOJ will view the board's actions as a clear reinforcement of the company's commitment to compliance. We maintain our Overweight rating on WMGI and $18 target." In yesterday's trading, Wright Medical lost 1.21% to close the day at $16.33.