Needham Keeps Their Sell Rating on NuVasive

By Austin Angelo

Needham analyst Michael Matson maintained a Sell rating on NuVasive (NASDAQ: NUVA) today. The company’s shares closed yesterday at $54.59, close to its 52-week low of $49.25.

Matson commented:

“NUVA’s 3Q17 revenue missed, although EPS beat consensus. More importantly, management lowered its 2017 guidance. Reported revenue growth slowed to 3% in 3Q17 from 5% in 2Q17 as the US spine market slowed and NUVA’s biologics continued its decline. Revenue growth was ~6% adjusting for the unexpected impact of the hurricanes (~$5M) and the expected impact of one less selling day (~$3M). NUVA’s operating margin beat consensus and increased 150 bps Y/Y. Management’s updated 2017 guidance implies flat Y/Y revenue in 4Q17. Even if we assume that guidance for no growth in 4Q17 is conservative, it makes NUVA’s mid- single digit revenue growth target for 2018 look challenging.”

According to, Matson is a 5-star analyst with an average return of 9.7% and a 61.0% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

NuVasive has an analyst consensus of Strong Buy, with a price target consensus of $75.33.

Based on NuVasive’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $247 million and quarterly net profit of $33.62 million. In comparison, last year the company earned revenue of $240 million and had a net profit of $3.93 million.

Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NUVA in relation to earlier this year.

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NuVasive, Inc. is medical device company, which 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.