Orthofix International (OFIX) Stock Forecast & Price Target

Orthofix Medical Inc. has raised its long-term net sales compound annual growth rate (CAGR) target to 6.5%-7.5%, reflecting stronger growth expectations. The company reported adjusted EBITDA of $23.9 million, an increase of $4.3 million year-over-year, supported by an expansion of the adjusted EBITDA margin by 130 basis points, indicating efficient operational performance. Additionally, Q4 revenues reached $215.7 million, showcasing an 8% year-over-year growth, primarily driven by strong performances in Spine Fixation and Bone Growth Therapies, with management highlighting a promising outlook for the $200 million fracture market as they anticipate continued penetration with upcoming product approvals.

Orthofix Medical's decision to discontinue the M6-C and M6-L artificial disc product lines, which represented $23.4 million in expected 2024 sales, underscores significant challenges in maintaining profitability and reflects declining demand within its product offerings. The company also faces execution risks associated with its merger with SeaSpine, as well as heightened competition from larger, better-funded rivals, which may hinder its ability to drive growth and attract top talent. Furthermore, evolving reimbursement rates and potential regulatory hurdles present additional threats to Orthofix's earnings and overall market positioning, contributing to a negative outlook on the stock.