Good news from the FDA as well as a new acquisition should boost this company’s shares.
Integra Lifesciences Hldgs Corp (IART)
from Argus Weekly Staff Report
On September 19, Integra Lifesciences Hldgs Cor (IART) announced that it would acquire Medtronic’s MicroFrance ENT and laparoscopic instruments business—the latest in a series of tuck-in acquisitions that should contribute to revenue and EPS growth.
The FDA recently completed its reinspection of Integra’s Anasco, Puerto Rico manufacturing facility, and said that the company had addressed the issues raised in its warning letter. We expect the warning letter to be lifted soon, which should enable the company to reach full production of high-margin tissue-regeneration products.
We are reiterating our 2014 adjusted EPS estimate of $2.97. We are raising our 2015 estimate to $3.37 from $3.35, reflecting expected contributions from the Premier GPO agreement and the MicroFrance deal. We view IART shares as attractively valued at 14.5-times our 2015 EPS estimate, below the peer group average of 15.5. We are reaffirming our target price of $55.
Jim Kelleher, CFA, Argus Weekly Staff Report, www.argusresearch.com, 212-425-7500, October 13, 2014