UPDATE: Piper Jaffray Reiterates Orthofix International at Neutral, New CEO Expected

In a report published by Piper Jaffray, analyst Matt Miksic reiterated his Neutral rating and $43 price target on Orthofix International

. Piper Jaffray reported that, “The departure of Orthofix CEO Bob Vaters is unexpected and, for many investors, disappointing, given that much of the operating results and stock performance over the past several years has been attributed to Mr. Vaters's efforts and execution. In explaining the events that led to Mr. Vaters resignation, the company described a process whereby the board and Mr. Vaters came to the same conclusion together. That said, as we often note, in these situations, investors are unlikely to feel completely comfortable with management's explanation of Mr. Vaters departure until some time has passed and a new outlook has been established. Given the unexpected nature of the announcement, we would obviously expect some near term volatility, however, cash flow and valuation should provide a degree of support for the stock in the mid to upper 30s. We remain Neutral on OFIX for now.” Shares of Orthofix International closed at $38.82 on Wednesday.