Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical has demonstrated robust growth with a 14.2% increase in its global spine segment in FY/24, fueled by distribution expansion and deeper market penetration. The company is expected to see a significant improvement in its adjusted EBITDA margin, projected to rise from 8.4% in 2024 to 13.5% by 2027, signaling enhanced operational efficiency. Additionally, a consistent top-line growth rate of mid-to-upper single digits, coupled with a transition to positive free cash flow starting in the second half of 2025, supports a favorable long-term outlook for the company’s stock.

Orthofix Medical Inc. exhibits a negative financial outlook due to projected net interest expenses ranging between $19 million and $20 million for FY/25, which may hinder cash flow generation despite anticipated improvements in FY/26 and FY/27. The company's commitment to research and development (R&D) investment is expected to remain stable in monetary terms; however, it is likely to decline as a percentage of revenue, indicating a potential reduction in innovation. Furthermore, where the shares currently trade just above 52-week lows, this modest valuation raises concerns, particularly as Orthofix has historically been viewed as lagging in terms of innovation and new product development compared to its peers.