KIDS on the Road: An Underappreciated Growth Story w/ Profitability Inflecting

研报英文原文证据摘录

KIDS on the Road: An Underappreciated Growth Story w/ Profitability Inflecting

Medical Supplies & Devices

OrthoPediatrics Corp

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

June 14, 2026

Price: $17.82 (06/12/2026) KIDS on the Road: An Underappreciated

Price Target: $23.00 Growth Story w/ Profitability Inflecting

BUY (1)

ESG SCORE: 71/100

Mathew Blackman THE TD COWEN INSIGHT

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Last week, we hosted KIDS CEO David Bailey & CFO Fred Hite for meetings. We recap 4

mathew.blackman@tdsecurities.com

themes: the new product "Supercycle", how KIDS is governing growth for cash/profitability,

Key Data but highlighting a long revenue runway and thoughts on the market with large competitors

Symbol NASDAQ: KIDS exiting, opening opportunities. We think the KIDS growth & profitability inflection story remains

Market Cap $457.7MM underappreciated/undervalued.

The KIDS Supercyle is Upon Us. KIDS is very much in the early stages of a multi-year new

product cycle, spanning most key franchises. While KIDS has historically demonstrated a

productive new product engine, the current "Supercycle" reinvigorates and amplifies that

innovation engine. Roughly 5-years ago, new products (launched within 24-months) were

~1/3rd of revenue, but due to European MDR compliance requirements, investment was

redirected and the new product cadence decelerated. In 2025, and gathering momentum

through 2026 and into the next decade, multiple new, differentiated products (Verteglide,

eLLi, Specialty Bracing) will become increasingly key growth drivers. Importantly, these

new products not only expand indications, TAMs, and portfolio breadth, but also come with

higher ASPs, margins, and much more efficient set utilization. "There's nothing else like