What Made Needham Upgrade NuVasive’s Stock?

By Jason Carr

NuVasive (NASDAQ: NUVA) received a Buy rating and a $71 price target from Needham analyst Michael Matson today. The company’s shares closed yesterday at $60.77.

Matson said:

“We are upgrading NUVA to Buy from Underperform since: 1) we believe that consensus revenue and EPS estimates have declined to levels that are more realistic and likely conservative, 2) NUVA has done several acquisitions that probably aren’t fully factored into consensus revenue or EPS estimates (Vertera and SafePassage, which we estimate could add ~2% to NUVA’s 2018 revenue), 3) NUVA should see a significant benefit from tax reform (which we expect to increase its EPS by ~15% in 2018), and 4) we think NUVA shares are attractively valued considering the expected benefit from tax reform. We have raised our revenue and EPS estimates to reflect recent deals and tax reform.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 9.1% and a 60.2% 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 $70.60, representing a 16.2% upside.

In a report issued on December 21, J.P. Morgan also maintained a Buy rating on the stock.

The company has a one-year high of $81.68 and a one-year low of $49.25. Currently, NuVasive has an average volume of 876K.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.