FMP
Jan 22, 2024
UBS analysts initiated coverage on Enovis Corp (NYSE:ENOV) with a Buy rating and a price target of $75.00. The analysts anticipate that Enovis will lead the orthopedics market with high single-digit sales growth through at least 2027, driven by a shift in its portfolio mix towards higher-growth and higher-margin Reconstructive (Recon) products.
Key factors contributing to Enovis's potential sales and EPS growth include the acquisition of LimaCorporate, which not only enhances exposure to the growing Recon sector but also improves margins.
Additionally, opportunities for international cross-selling, greater than expected market share gains in extremities, effective execution of new product launches, and stronger growth in the Prevention & Recovery (P&R) segment are expected. The latter is underpinned by a stable supply chain and increasing pricing power.
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