In a report released today, Michael Matson from Needham maintained a Hold rating on NuVasive (NUVA). The company’s shares closed yesterday at $55.42.
Matson noted:
“NUVA’s 4Q18 revenue was consistent with its preannouncement while its EPS beat consensus due to a lower than expected tax rate. Management provided initial revenue and EPS guidance that was below consensus due to SG&A and R&D reinvestment. Despite an easier comp, organic growth slowed to 5% in 4Q18 from 8% in 3Q18 as domestic growth slowed. Operating margin declined 220 bps Y/Y given gross margin pressures and R&D investments and was 50 bps below consensus. NUVA plans to unveil its robotic system at the 2019 NASS meeting in the fall but management did not say when it would be launched; assuming it’s launched mid-2020, we don’t expect it to contribute much until 2021. With 2019 looking like a transitional year with nominal revenue and EPS growth, we maintain our Hold rating.”
According to TipRanks.com, Matson is a top 100 analyst with an average return of 14.1% and a 70.1% 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 NuVasive is a Moderate Buy with an average price target of $62.44, which is a 12.7% upside from current levels. In a report issued on February 12, Jefferies also downgraded the stock to Hold with a $60 price target.
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NuVasive’s market cap is currently $2.85B and has a P/E ratio of 123.16. The company has a Price to Book ratio of 3.55.
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NuVasive, Inc. engages in the development of minimally-disruptive surgical products and procedurally-integrated solutions for spine surgery. It offers cervical and spine fusion surgery, cervical plating, and posterior fixation products. The company was founded by Alexis V. Lukianov on July 21, 1997 and is headquartered in San Diego, CA.
