Bond.az reports that TD Cowen has lowered its price target for ofix-medical" class="internal-tag-link">Orthofix Medical (NASDAQ:OFIX) to $12.00 from $14.00, maintaining a Hold rating. The stock currently trades at $10.26, near its 52-week low.
The move follows CMS rate cuts of approximately 10% for bone stimulation products, which represent about 25% of Orthofix's sales. The company has revised its guidance and withdrawn its long-range plan.
TD Cowen views the rate reduction as a one-time event affecting the company's growth transition and profitability. While OFIX was not profitable over the past 12 months, analysts expect profitability this year with EPS forecast at $0.96 for fiscal 2026. InvestingPro Fair Value analysis suggests the stock is undervalued.
The analyst notes that a new product cycle can still drive incremental growth and margin expansion, albeit at a slower pace than previously anticipated.
Orthofix Medical manufactures and distributes medical devices for musculoskeletal conditions.
