Meetings With Wright Medical Management Leave Analysts More Confident Company Can Hit Guidance

Following its meeting with Wright Medical Group Inc's WMGI Chief Communications Officer Julie Tracy, Barclays continues to think the company can deliver mid-teens underlying growth. The strong growth stems from expectations of strong product cycles in growing end markets.

Analyst Matthew Taylor believes the company is making progress with getting Augment approved through hospital's Value Assessment Committees. The analyst also views that there would be further upside for the company's dissynergy number of $25 million to $30 million.

Barclays noted the company estimates penetration of ankle market to be only at 15-20 percent in the US. The firm believes the shoulder market is still growing and developing, as technologies lure new and young patients. The firm is also feeling the company has a steady flow of upper, lower and enabling technologies over the next few years.

Barclays is increasingly confident that the company will meet its targets. The firm also said near-term catalysts in the second quarter include quarterly results and further clarity on the Conserve litigation.

Barclays reiterated its Outperform rating on shares, with a price target of $33.

At time of writing, the shares of Wright Medical were up 3.76 percent at $24.56.