TD Cowen has opened coverage on OrthoPediatrics Corp. (NASDAQ: KIDS) with a Buy recommendation and set a price target of $23.00. The stock was trading at $17.78 at the time of the note, and the company’s market capitalization is cited at about $448 million.
In its initiation, TD Cowen described OrthoPediatrics as "the clear leader in pediatric orthopedics," pointing to the company's footprint across trauma, deformity, scoliosis and related segments. The research team emphasized the business's product positioning and its continued pipeline activity.
Analyst Michael Blackman of TD Cowen singled out the company’s "continued innovation" and the potential for OrthoPediatrics to capture advantages from what he characterized as "industry dislocation tailwinds." Those factors underpin the firm's positive stance.
TD Cowen's financial projections for OrthoPediatrics include "sustained low-double-digit revenue growth," an improvement in EBITDA performance and movement toward "near-term free cash flow breakeven." The firm added that these improving financial indicators "do not appear adequately reflected" in the current market valuation, a view that supports the Buy rating.
Recent operating results supplied additional context for the coverage call. OrthoPediatrics reported record revenue for 2025 of $236.1 million, an increase of 15% from the prior year. The company’s preliminary, unaudited fourth-quarter revenue totaled $61.3 million, up 16% year over year. TD Cowen noted growth across geographies, with domestic revenue rising 13% and international revenue climbing 32% in that quarter.
Other broker commentary shows a range of perspectives. Needham trimmed its price target on OrthoPediatrics to $26.00 from $42.00, citing concerns about growth, but kept a Buy rating. Citizens reiterated a Market Outperform rating with a $25.00 target even though the company had reported third-quarter revenue that was 4% below consensus.
On product expansion, OrthoPediatrics has broadened its Specialty Bracing division by introducing two new hip devices. Earlier quarterly disclosures showed third-quarter adjusted results with an EPS of -$0.24, slightly outperforming a -$0.25 forecast, and revenue of $61.2 million, up 12% year over year but short of the $62.12 million estimate.
The initiation by TD Cowen frames OrthoPediatrics as a specialty device company with accelerating top-line momentum and a path to improved margins, while other analysts weigh growth trajectory and recent quarterly variances in forming their views.