Needham Believes LivaNova PLC (LIVN) Still Has Room to Grow

Needham analyst Michael Matson assigned a Buy rating to LivaNova PLC (NASDAQ: LIVN) today and set a price target of $128. The company’s shares closed yesterday at $103.87, close to its 52-week high of $105.90.

Matson observed:

“Services (CMS) announced that it opened a national coverage analysis (NCA) for vagal nerve stimulation (VNS) for treatment-resistant depression (TRD). The proposed and final announcements are expected on or around 11/30/18 and 2/28/19, respectively. Given new clinical data published since CMS denied TRD coverage in 2007 and the recent spate of high-profile suicides, we believe CMS is likely to cover VNS for TRD again. We have performed a more detailed analysis of the potential impact of TRD coverage and now see potential for a larger share price impact than in our prior analysis. Given this, we still see a positive expected value around the NCA decision and recommend that investors buy shares in advance of the proposed NCA and we have raised our price target to $128 from $106.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 11.4% and a 64.5% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on LivaNova PLC is a Moderate Buy with an average price target of $106.20.

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Based on LivaNova PLC’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $13.27 million. In comparison, last year the company had a net profit of $47.5 million.

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LivaNova Plc is a global medical technology company, which engages in the development and delivery of important therapeutic solutions for the benefit of patients, healthcare professionals and healthcare systems. It operates through the Cardiac Surgery and Neuromodulation, and Other Corporate segments.