Investment bank Needham expects the orthopedic device market to slow in growth later this year, declining to 4% or 5% in 2024 and beyond, according to a Feb. 25 report from Seeking Alpha.
The market saw 7% growth in 2023, which was its highest rate in over 10 years other than a pandemic "bounce back." The report attributes a booming market to a backlog of procedures that were put off during the COVID-19 pandemic.
Needham believes that two device companies, Enovis and Paragon 28, are the most primed for growth given new product launches and high company valuations.
Enovis stock has been growing since January, increasing by 12%. Paragon 28's revenue is expected to grow 20% in 2024, with its stock up 7% year to date.