Piper Jaffray Maintains Overweight Rating On Wright Medical (WMGI)

Piper Jaffray is reiterating its Overweight rating On Wright Medical Group (NASDAQ: WMGI).

Piper Jaffray writes, “Q4 looked very strong, and after netting out one-timers in the quarter, it still looked strong, driven primarily by strong underlying growth in US knees and extremities. EPS was $0.25 vs. $0.22 in 4Q09, $0.04 above our estimate and consensus of $0.21. Sales of $138 mil were up 6% (7% CC), $9 above our estimate of $129 mil and $8 mil above consensus.”

“Given the tone of Q4, the only way to view management's outlook in our view is that it's on the conservative side. The good news is that Wright's ortho business appears to be stabilizing, and management has prudently positioned guidance for 2011 so as to leave room for upside if one or two variables come in better than expected.”

Piper Jaffray also reaffirmed its $18 Price Target on Wright Medical.

Shares of Wright Medical closed yesterday at $15.11.