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Needham initiated coverage of ICU Medical (NASDAQ:ICUI) with a hold rating, citing limited revenue growth.
“While we think ICUI’s currently depressed earnings will recover over the next few years, we expect its low-single-digit normalized revenue growth to limit its earnings growth to the mid- to high-single digits,” Needham said in its note.
The investment bank said it felt the shares were fairly valued, given the company’s growth profile. It added it would become more positive if there are “any signs of sustainable mid-single-digit or better revenue growth.”
Needham didn’t set a price target for the stock.