Canaccord Lowers Price Target on Orthofix After Q4 Results and 2026 Outlook Update

Orthofix Medical Inc. (OFIX) saw its stock price target reduced to $24.00 per share by Canaccord after the company reported fourth-quarter financial results and updated its long-term outlook through 2026. The firm cited modest revenue growth and tighter margin expectations as key factors in the adjustment. OFIX reported Q4 revenue of $138.4 million, a 2.3% year-over-year decline, driven by lower demand in its spinal implant segment and continued pricing pressures in key international markets. Adjusted EBITDA for the quarter reached $35.6 million, representing a 6.7% decrease from the prior-year period. The company’s updated 2026 outlook projects revenue growth in the low single-digit range, with adjusted EBITDA margins expected to remain flat to slightly declining compared to 2024 levels. This contrasts with prior expectations of modest margin expansion and signals a more conservative trajectory. Management attributed the outlook to ongoing reimbursement challenges in the U.S. and slower-than-anticipated adoption of its newer spinal fixation products in Europe. The downgrade reflects a broader reassessment of growth sustainability in the orthopedic device sector, particularly for mid-cap players with international exposure. OFIX’s stock, which had traded above $30.00 earlier in the year, declined approximately 8% in after-hours trading following the announcement. Investors in OFIX, including institutional holders and healthcare-focused ETFs with exposure to medical devices, are now reassessing valuation metrics and growth assumptions. Canaccord maintained a 'Hold' rating on OFIX, emphasizing the importance of execution in upcoming product launches and operational improvements. The firm noted that while the company remains well-positioned in the spinal fixation market, near-term headwinds may limit upside until 2025.