Oppenheimer Leaves Wright Medical Group Perform Unchanged (WMGI)

Oppenheimer left its Wright Medical Group WMGI Perform rating unchanged in a research report published today. In the report, Oppenheimer "Sales in 4Q of $138M (+7% CC) were ahead of our $130M, largely on US knee improvement and above normal distributor stocking overseas of about $6M. However, pressures in biologics and hips remain. Guidance for 2011 of $517-535M top line/$0.69-0.76 bottom line fall below the Street's $537M/$0.75, but is likely conservative. Management does not factor in any FX tailwind (+2% based on current rates). With operating margin and working capital metrics still meaningfully trailing ortho peers, we believe the shares appropriately trade at a discount on EV/sales. On PE, shares are at a premium to ortho peers (20x vs. 14.5x)." Shares of Wright Medical Group were at $15.82 in after hours trading, up 4.70% from Thursday's market close.