Brean Capital Maintains Buy NuVasive Following Preliminary 4Q14 Results
In a research report issued today, Brean Capital analyst Jason Wittes maintained a Buy rating on NuVasive Inc (NASDAQ:NUVA) with a $53 price target, after the company announced preliminary 4Q14 revenues of $203 million versus consensus of $200 million and Brean’s $197 million estimate.
Wittes noted, “Operating margins for the year are expected to exceed 16.5%, a 150 bp improvement—implying at least $0.38 for 4Q EPS versus consensus and our estimate of $0.37. For 2015, the company anticipates 6% (7.5% cc) revenue growth to $810 million—versus consensus of $810 million and our $814 million estimate. This is basically in line with prior comments for mid-high singledigit revenue growth, though it accounts for an $8 million FX headwind—and still looks conservative to us, thus we’re keeping our top-line assumptions for now.”
“Additionally, the company sees operating margins improving 250bp (100bp from core improvements and 150 bp from the expiry of MDT patent)—in line with previous management comments. Full details will be provided on February 24th, when the company reports, and we will re-evaluate our estimates and price target then.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Wittes has a total average return of 10.1% and a 70.8% success rate. Wittes has a 25.7% average return when recommending NUVA, and is ranked #833 out of 3441 analysts.