Oppenheimer Remains a Hold on Globus Medical

In a report released today, Steven Lichtman from Oppenheimer maintained a Hold rating on Globus Medical (NYSE: GMED), with a price target of $52. The company’s shares closed yesterday at $49.65, close to its 52-week high of $52.56.

Lichtman said:

“Globus’ 1Q18 sales of $174M topped our/consensus estimates of $164M/$168M, led by higher US sales (in particular, stronger robotic system sales). Core US spine grew above market at 4% on a selling days-adjusted basis. EPS was ~$0.05 higher than our estimate, led by the higher sales and gross margin and a $0.02 benefit from lower tax rate, offset slightly by higher investments in opex. Guidance for 2018 sales/EPS was raised by $5M/$0.02 to $695M/$1.52. While slow US spine market growth is a hurdle, improvements in US competitive sales hiring and salesforce development, a rollout in Japan and new product flow (particularly Excelsius) are offsets. GMED is building out its trauma sales force with launch expected later this summer.”

According to TipRanks.com, Lichtman is ranked 0 out of 5 stars with an average return of -6.4% and a 51.2% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Integra Lifesciences, Wright Medical Group, and K2M Group Holdings.

Currently, the analyst consensus on Globus Medical is Moderate Buy and the average price target is $55, representing a 10.8% upside.

In a report released yesterday, BTIG also assigned a Hold rating to the stock.

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Globus Medical’s market cap is currently $4.8B and has a P/E ratio of 45.14. The company has a book value ratio of 4.9588.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, David Davidar, a Director at GMED sold 70,000 shares for a total of $3,535,000.

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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. The company was founded by David C.