Needham & Company Downgrades Wright Medical (WMGI) to Buy

Needham & Company downgraded Wright Medical (NASDAQ: WMGI) from Strong Buy to Buy with a price target of $38.00 (from $40.00).

Analyst Mike Matson comments, "WMGI made three big announcements: it is merging with Tornier (TRNX), Augment received an approvable letter, and it missed 3Q14 revenue consensus and lowered revenue guidance. While we think WMGI certainly fits well with TRNX, in our opinion the deal dilutes the impact of Augment, has lackluster cost synergies, and could pressure WMGI's EV/sales multiple given revenue dissynergies and a reduced acquisition premium. Given this, we are downgrading WMGI from Strong Buy to Buy and lowering our price target from $40 to $38."

For an analyst ratings summary and ratings history on Wright Medical click here. For more ratings news on Wright Medical click here.

Shares of Wright Medical closed at $31.64 yesterday.

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