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

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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.”

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