Home Market News Small Caps LeMaitre Vascular: Leading the Way in Core Segments, According to Oppenheimer’s Outperform Rating

LeMaitre Vascular: Leading the Way in Core Segments, According to Oppenheimer’s Outperform Rating

0
LeMaitre Vascular: Leading the Way in Core Segments, According to Oppenheimer’s Outperform Rating

Oppenheimer has started coverage on LeMaitre Vascular Inc (LMAT), giving it an Outperform rating and setting a target price of $70.

In their analysis, analysts Suraj Kalia and Shaymus Contorno highlight that LeMaitre Vascular Inc generates around 90% of its sales from approximately one-third of its core markets, including ePTFE grafts, biologic & allografts, carotid shunts, embolectomy and occlusion catheters, and valvulotomes. This has enabled the company to establish itself as a leader in these segments, without having to directly compete with larger players in other areas.

Over 11,000 vascular surgeons across 4,800 hospitals rely on LeMaitre Vascular’s products, with an average annual billing ranging from $35,000 to $40,000. This widespread adoption has fostered loyalty among users and gives LeMaitre Vascular a competitive pricing advantage. As a result, the company has achieved a compound annual growth rate (CAGR) of 4-8% in the past four years.

LeMaitre Vascular’s targeted approach in vascular surgery is further bolstered by its strategy of pursuing smaller strategic acquisitions. With a success rate of about 70% in their 24 acquisitions over the past two decades, LeMaitre Vascular has established a strong presence in the industry. The significant acquisition of Artegraft in 2020, which accounted for one-sixth of their total sales, indicates that the company is poised for another major acquisition in the near future.

Price Action: On Wednesday, shares of LeMaitre Vascular Inc (LMAT) were trading at $56.70, reflecting a 2.55% increase.