ITGR: Shares Will Recover As Order Headwinds Are Resolved

Integer Holdings' average analyst price target has sharply decreased, dropping from above $120 to a range of $77 to $88. Analysts cite concerns that recent order shifts, lowered guidance, and uncertainty in the 2026 outlook justify a reset in valuation expectations for the stock.

Analyst Commentary

Recent analyst updates on Integer Holdings present a complex picture, reflecting concerns about future performance as well as confidence in the company’s long-term prospects. The following highlights summarize the key bullish and bearish takeaways from the most recent research notes on the stock.

• Despite the recent price target reductions, some bullish analysts maintain a positive outlook on the company. They highlight that its Q3 results exceeded expectations on both revenues and earnings.
• The pullback in share price is seen by some as overdone. Valuations are now considered more reasonable in light of updated guidance and sector-wide pressures.
• Analysts expect Integer’s crucial role as a contract manufacturer for OEM customers to support eventual recovery. The business typically rebounds from temporary headwinds in this industry segment.
• Some anticipate that, over the next 12 months, the company’s shares could recover as issues related to new product launches and order shifts are gradually resolved.

• Bearish analysts have responded to revised guidance by downgrading the stock and lowering target prices. They note that outlooks for the fourth quarter and 2026 are significantly below prior expectations.
• Concerns persist regarding the visibility and timing of Integer’s return to market growth rates, with uncertainty around when improved revenue consistency might be realized.
• Order changes to major products have had a material impact on forward guidance. This has prompted investors to wait for greater clarity before reassessing the company’s valuation.
• Ongoing inventory consolidation and lower-than-expected uptake of newer product launches are viewed as risks that could result in a bumpy near-term performance for the stock.

What's in the News

• Private equity firm GTCR is cleared to acquire Surmodics, with a divestiture of some Biocoat assets to Integer to address regulatory concerns (Reuters).
• Citi downgraded Integer to Neutral from Buy, cutting the price target to $77 and citing a disappointing 2026 outlook and the need for improved revenue visibility (Citi research note).
• Integer Holdings announced a share repurchase program authorizing up to $200 million in common stock buybacks. The program will be funded primarily by cash on hand and free cash flows.
• Payman Khales has been appointed as Chief Executive Officer, succeeding Joseph Dziedzic. Dziedzic will stay on as Special Advisor until March 2026 to support the leadership transition.
• Integer updated guidance for 2025, projecting GAAP sales growth of 7% to 8%. The company expects earnings and income from operations to decline from prior year levels.

Valuation Changes

• The Fair Value Estimate remains unchanged at $84.86, indicating stability in the assessed intrinsic value of Integer Holdings.
• The Discount Rate has risen slightly from 8.80% to 8.94%, reflecting a modest increase in perceived risk or required return by analysts.
• The Revenue Growth Projection is essentially flat, holding steady around 4.20%, suggesting expectations for the company’s top-line expansion are unchanged.
• The Net Profit Margin Forecast is steady at approximately 11.75%, indicating little change in outlook for profitability.
• The Future Price-to-Earnings (P/E) Ratio has increased marginally from 17.51x to 17.58x, signaling a minimal rise in forward valuation multiples.