NuVasive Gets a Buy Rating from Needham

By Austin Angelo

In a report released today, Michael Matson from Needham reiterated a Buy rating on NuVasive (NASDAQ: NUVA), with a price target of $71. The company’s shares opened today at $59.

Matson noted:

“NUVA preannounced 4Q17 revenue that was in line with consensus and reiterated its guidance for mid-single digit revenue growth in 2018 with at least 100 bps of operating margin improvement. Management noted that slower US procedural growth and continued storm-related disruption in Puerto Rico hurt its revenue growth although its international growth remained strong at over 20%. We expect revenue growth to improve in 2018 as comps ease progressively through the year, new product launches including LessRay gain momentum, and new sales force hires see increased productivity and we are buyers on today’s weakness.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 9.5% and a 62.0% 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 Strong Buy and the average price target is $72, representing a 22.0% upside.

In a report issued on January 4, Canaccord Genuity also reiterated a Buy rating on the stock with a $81 price target.

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 $271 million and had a net profit of $6.38 million.

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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.