Assessing Integer Holdings (ITGR) Valuation After Recent Share Price Momentum Shift

Integer Holdings (ITGR) is back in focus after recent share price moves, giving investors a fresh chance to reassess the medical device manufacturer’s returns profile and financial scale ahead of their next portfolio decisions.

See our latest analysis for Integer Holdings.

At a share price of US$84.85, Integer Holdings has seen a 1-day share price return of 2.23% and a 90-day share price return of 18.79%, while the 1-year total shareholder return is a 33.18% loss. This points to improving short-term momentum alongside a weaker longer-term record.

If this rebound has you thinking about where else capital could work hard in healthcare, it may be worth scanning our screener of 27 healthcare AI stocks as potential next ideas.

With Integer trading at US$84.85, sitting at an intrinsic discount of about 40% and below the average analyst price target, you have to ask: is this a genuine undervaluation, or is the market already banking on future growth?

Most Popular Narrative: 80% Undervalued

Compared with Integer Holdings' last close of $84.85, the most followed narrative pegs fair value at about $85.57. This suggests only a small gap between market price and intrinsic estimate, despite a headline discount of roughly 40% to the modelled future cash flow value of $140.46.

Ongoing investments in manufacturing automation and operational excellence initiatives are yielding sequential gross and operating margin improvements, with expectations for further quarterly expansion through the year, underpinning continued net margin and earnings growth.

Read the complete narrative. Read the complete narrative.

Curious what kind of revenue path and margin reset sit behind that fair value? The narrative focuses on compounding earnings, richer profitability, and a future earnings multiple below many current sector heavyweights. Want to see how those ingredients fit together in detail? The full narrative lays out the numbers behind that view.

Result: Fair Value of $85.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could look very different if customer concentration or foreign exchange swings were to hit demand and earnings more severely than current expectations assume.

Find out about the key risks to this Integer Holdings narrative.

Another View: Multiples Tell a Tighter Story

While the narrative and cash flow work suggest Integer looks materially undervalued, its current P/E of 28.9x is above the fair ratio of 25x. It is also only slightly below the US Medical Equipment industry at 30.5x, with peers near 89.7x. Is this a margin of safety, or just full pricing with less downside?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Does this mix of potential upside and clear risks line up with how you see Integer today, or does it raise new questions you want answered more quickly? Take a moment to review the figures, stress test the assumptions, and then weigh up the 2 key rewards and 2 important warning signs to shape your own conclusion.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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