UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on Integra LifeSciences

In a report published Monday, Piper Jaffray & Co. reiterated its Neutral rating on Integra LifeSciences IART, and slightly raised its price target from $40.00 to $41.00. Piper Jaffray noted, “Management delivered unexpected upside in Instruments and Orthopaedics, driven in part by stabilization of distributor inventories, strong order patterns in the quarter and improving performance in extremities growth. Upside to sales net of COGS (+13c), lower R&D (+4c) and higher non-op (+3c), were partially offset by higher SG&A (-14c), and higher tax (-2c) to deliver 4c upside to our EPS estimate. Management's efforts regarding the remediation of its Plainsboro facility continue to make encouraging progress, as evidenced by the FDA coming in to re-inspect the facility earlier than expected. We continue to expect the warning letter to take the better part of a year to be resolved, however management has clearly made the remediation a priority and we would expect this to improve the probability of a timely resolution.” Integra LifeSciences closed on Friday at $37.99.