Wright Medical buyout long part of investment thesis, says Cantor Fitzgerald
A potential takeout has long been part of Wright Medical Group's investment thesis since current CEO Bob Palmisano took over leadership of the company in 2011, Cantor Fitzgerald analyst Craig Bijou tells investors in a research note. As such, he is "somewhat hesitant" to believe that Friday's report from Bloomberg regarding a potential sale is different from the prior occasions. With that said, the analyst says Medtech transactions over the last five years suggest a multiple of four-to-five times forward sales. Wright is an attractive asset, but there are likely several considerations for potential buyers, says Bijou, who keeps an Overweight rating on the shares with a $28 price target.