Wall Street Recommendations, Target Price for K2M Group Holdings



Analysts’ recommendations

K2M Group Holdings (KTWO) is a medical technology firm focused on the development of minimally invasive technologies for the spine. It has a product portfolio comprising 83 products that include implants, disposables, and instruments for the treatment of spinal pathologies. The company has a market capitalization of $1.2 billion. 

On August 30, KTWO stock price jumped ~26% on the news that Stryker (SYK) is acquiring K2M Group Holdings for ~$1.4 billion. This is at a premium of ~27% to the average of three months’ closing prices of KTWO. In this article, we’ll look at K2M Group Holdings’ recent recommendations and 12-month target prices from Wall Street analysts.

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On August 31, Reuters surveyed seven analysts covering KTWO stock. Of these analysts, approximately 57% (or four) analysts have a “buy” or “strong buy” recommendation on the stock. Three analysts have a “hold” recommendation on KTWO stock. None of the analysts gave a “sell” recommendation to K2M Group Holdings stock.

The above chart shows analysts’ recommendation summary for KTWO stock over the last few months.

Target prices

On August 31, K2M Group Holdings had a consensus 12-month target price of $25.67 per share. This target price represents a 12-month return potential of -6.6% based on the stock’s closing price of $27.50 on August 30.

Analysts’ recommendation revisions and updates

On August 30, Needham had cut its recommendation on KTWO stock from “buy” to “hold.” On August 2, when the company announced its second-quarter results, Oppenheimer had raised its target price on K2M Group Holdings from $24 to $25. On the same day, Needham and RBC also raised their target prices on the stock from $23 to $29 and $23 to $24, respectively.

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