Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. has demonstrated robust financial performance, with management raising its long-term net sales compound annual growth rate (CAGR) target to 6.5%-7.5%, indicating positive growth prospects. The company reported an adjusted EBITDA of $23.9 million, showing a year-over-year increase of $4.3 million and an expansion of adjusted EBITDA margin, which surpassed consensus estimates. Additionally, strong revenue growth was evident with Q4 revenues totaling $215.7 million, an 8% increase year-over-year, driven by notable performance in both the spine fixation and bone growth therapies segments.

The decision to discontinue the M6-C and M6-L artificial disc product lines, which generated $23.4 million in expected 2024 sales, reflects declining demand and a strategic focus shift, negatively impacting Orthofix Medical's EBITDA margins and overall profitability outlook. Additionally, potential challenges such as integration risks with SeaSpine, competition from larger firms, and the ability to attract skilled management and sales personnel could hinder the company's growth trajectory. Furthermore, regulatory hurdles and evolving reimbursement rates in the U.S. healthcare landscape pose significant risks to Orthofix's earnings and operational performance, contributing to an overall negative outlook for the stock.