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Globus Medical (GMED) Receives a Hold from Oppenheimer


Oppenheimer analyst Steven Lichtman maintained a Hold rating on Globus Medical (GMED) today and set a price target of $61. The company’s shares closed yesterday at $57.44, close to its 52-week high of $57.83.

Lichtman said:

“3Q18 sales were $169.2M versus our/consensus $168.2M/$167.5M ests. Higher core US spine sales offset lower than expected Excelsius robotic system sales. Core US spine growth accelerated to 7.5% led by new sales force contribution and Excelsius pull-through. We estimate six Excelsius placements in 3Q vs. 13 in 2Q; management pointed to a slower summer season and potentially some customer pausing ahead of NASS at September-end where competitors showed their robotic offerings. GMED saw a pick-up in activity in October and we maintain our 4Q Excelsiius estimate. 3Q EPS came in ahead at $0.39 vs. our $0.32E on the higher sales, better GM and higher interest income/lower tax rate (the two together contributed $0.04). Guidance for 2018 sales/EPS was raised again by $5M/$0.07 to $705M/$1.62.”

According to TipRanks.com, Lichtman is ranked 0 out of 5 stars with an average return of -5.3% and a 48.7% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Zimmer Biomet Holdings, and Motus Gi Holdings Inc.

Currently, the analyst consensus on Globus Medical is a Strong Buy with an average price target of $64.20.

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Based on Globus Medical’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $44.98 million. In comparison, last year the company had a net profit of $25.59 million.

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Globus Medical, Inc. is a medical device company, which engages in developing products that promote healing in patients with musculoskeletal disorders. It classifies products into Innovative Fusion and Disruptive Technology. It operates through the United States and International geographical segments.