LivaNova Receives a Hold from BTIG

By Carrie Williams

BTIG analyst Sean Lavin reiterated a Hold rating on LivaNova (NASDAQ: LIVN) on March 6. The company’s shares closed yesterday at $49.21.

Lavin noted:

“Last week, while we were at our Snowbird conference, LIVN reported Q4 results and released initial FY17 guidance. Once again, we are lowering our estimates for LIVN. While shares are inexpensive, we do not see how it will grow in the future unless major M&A or R&D efforts take place, moving LIVN into new markets. Given most of LIVN’s markets are flat to declining, we would be inclined to wait for the company to show intentions to enter new markets before recommending shares. We don’t expect an inflection point on cardiac surgery anytime soon and while new iterations in Neuromod may pad growth in 2H17, we think the lower end of the 1-3% revenue growth guidance would be a good achievement. There remain considerable areas of opportunity on the synergy side, which should support EPS growth. With the first innings of physical integration behind them, we think the co. is in a better position to focus on more sizeable areas of savings such as purchasing/direct procurement. However, we think the lack of revenue growth is more important than synergies and we reiterate our Neutral rating.”

According to TipRanks.com, Lavin is a 5-star analyst with an average return of 10.3% and a 60.1% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Tactile Systems Technology, Trivascular Technologies, and Obalon Therapeutics Inc.

Currently, the analyst consensus on LivaNova is Hold and the average price target is $53, representing a 7.7% upside.

In a report issued on February 21, Canaccord Genuity also reiterated a Hold rating on the stock with a $54 price target.

Based on LivaNova’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $311 million and GAAP net loss of $29.7 million. In comparison, last year the company earned revenue of $67.52 million and had a GAAP net loss of $25.09 million.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock.

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LivaNova Plc is a global medical technology company specializing in the areas of Cardiac Surgery, Neuromodulation and Cardiac Rhthym Management. The company was founded on October 19, 2015 and is headquartered in London, the United Kingdom.