02:05 PM EDT, 05/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We slash our target to $14 from $23, 6.3x our 2025 EPS estimate, a large discount to IART's historical forward average due to recent compliance issues. We cut our 2025 EPS estimate to $2.23 to $2.51 and 2026 to $2.72 from $2.78. Q1 EPS of $0.41 vs. $0.55 missed consensus by $0.02. Although total revenue increased 3.7% Y/Y due to the Acclarent acquisition, organic revenue fell 3.5% Y/Y on shipping holds in the Neurosurgery segment and production timing issues in the Tissue Technologies segment. Profitability metrics deteriorated, with gross margin declining 220 bps Y/Y to 62.2% due to ongoing compliance issues, implementation costs of the Compliance Master Plan, and supply chain challenges. IART cut its EPS outlook due to a $0.22/share anticipated impact of new tariffs, bringing its forecast to $2.19-$2.29. We think challenges from shipping holds and operational issues will continue into Q2, but the newly established Transformation and Program Management Office should help tackle these issues going forward.