Orthofix initiated with a Neutral at Roth MKM

Roth MKM analyst Jason Wittes initiated coverage of Orthofix with a Neutral rating and $12 price target as the firm rolled out coverage on the Orthopedic industry with a focus on spine and diversified orthopedic companies. The recent combination with SeaSpine “brings much-needed scale,” as well as diversification from auxiliary non-spine orthopedic businesses, but given the “turmoil” following the ousting of senior management for causes unrelated to business performance or financial statements, the firm sees increased execution risk and the potential for downward revisions to the outlook.