ITGR Should I Buy

Raymond James notes that Wednesday evening, the Wall Street Journal reported that Irenic Capital Management has taken a sub-3% position and activist approach to Integer, including a private letter to the board earlier this week. The report states an intent to push for a board refresh and potential sale under the belief that public markets undervalue the company. The firm's conversations confirm these central tenets. Raymond agrees that the current valuation underappreciates Integer's assets. The firm ultimately thinks the stock can perform as a public equity as the current drags abate. However, a sale would likely draw interest at valuations above current trading levels and could offer a more immediate path to upside, it argues. Regardless of a transaction, Raymond sees room for equity holders to be rewarded over time. The firm has an Outperform rating on the shares.