Spine

Wells Fargo Upgrades Orthofix International N.V. (OFIX) to Outperform

Wells Fargo upgrades Orthofix International N.V. (NasdaqOFIX) to Outperform. Valuation range increased from $33-38 to $39-43.

Wells analyst says, “We See Potential For EPS Upside From Further Operating Leverage…Since Q1 2008, OFIX’s operating margin has rebounded from ~9% to ~14% as its spine business reached break-even. While this is a large improvement, we think that there is still room for further improvement. We note that since the Breg acquisition, OFIX’s operating margins peaked at ~20% and we think there is potential to return to these levels over the next few years. Additionally, OFIX is still benefiting from savings from a facility consolidation in its spine business.”

Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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