Wells Fargo cut its price target on LeMaitre Vascular (NASDAQ: LMAT) to $86 from $94 while keeping an Equal Weight rating after the company missed on margins in third-quarter results.
LeMaitre reported third-quarter sales of $68 million, up 12% organically year-over-year, beating the Street estimate of $67 million. Americas revenue reached $42.7 million, up 9% year-over-year. International revenue was $25.3 million, up 17.5% excluding foreign exchange impacts.
Third-quarter earnings per share came in at $0.65, missing estimates of $0.69. Gross margin was 71.7%, below the estimate of 72.1%. Operating margin was 26.0%, missing the estimate of 27.3%. Price contributed approximately 7% to organic growth while volume added approximately 5%.
Eight analysts have revised earnings downward for the upcoming period, according to InvestingPro. The stock trades at a P/E ratio of 30.9 with a PEG ratio of 0.78.
Citizens also adjusted its price target to $110 from $127, maintaining a Market Outperform rating.
LeMaitre acquired vascular assets from B. Braun for $19.2 million, including polyester and silver-coated grafts, valve cutters, and vein strippers. The acquired assets generated $9.4 million in sales in 2025, with approximately $9.5 million expected in 2026. The company expects a commercial transition over 18 to 24 months and anticipates approximately $150,000 of fourth-quarter direct sales with first-year customer attrition of 10% to 15%.
Investors watching LMAT should monitor the margin trajectory through the commercial transition period and track whether the B. Braun acquisition gains traction without significant customer losses.