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

In a report released today, Michael Matson from Needham maintained a Buy rating on LivaNova PLC (NASDAQ: LIVN), with a price target of $102. The company’s shares opened today at $88.59, close to its 52-week high of $92.31.

Matson wrote:

“LIVN beat consensus revenue and EPS in 1Q18. Management raised its 2018 revenue and adjusted EPS guidance due to the TandemLife acquisition and a lower tax rate. Underlying revenue growth slowed to 5% in 1Q18 from 8% in 4Q17 as both Neuromodulation and Cardiac Surgery growth slowed. Gross margin was up 170 bps Y/Y while operating margin was down 360 bps Y/Y and below consensus due to higher SG&A and R&D spending. While the 1Q18 results were fine on the surface, we think investors are disappointed by the weak Neuromodulation growth (given the ongoing SenTiva launch), lower than expected operating margin, and lack of more significant revenue and EPS upside. Even considering this, we think today’s sell- off is an overreaction and we are buyers on the weakness.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 8.8% and a 60.6% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

LivaNova PLC has an analyst consensus of Moderate Buy, with a price target consensus of $98.75.

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The company has a one-year high of $92.31 and a one-year low of $50.10. Currently, LivaNova PLC has an average volume of 394.6K.

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LivaNova Plc is a global medical technology company specializing in the areas of Cardiac Surgery, Neuromodulation and Cardiac Rhythm Management. It provides its services to patients, healthcare professionals and healthcare systems. The company was founded on October 19, 2015 and is headquartered in London, the United Kingdom.