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NuVasive Inc (NUVA) Raising PT on Accretive Acquisition - Brean Capital

June 7, 2016 10:31 AM EDT
Get Alerts NUVA Hot Sheet
Price: $39.75 --0%

Rating Summary:
    11 Buy, 21 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Brean Capital analyst, Jason Wittes, raised his PT ON NuVasive (NASDAQ: NUVA) to $60 from $58. Last night, after the close NUVA acquired privately held Biotronic NeuroNetwork, a neuro monitoring service business for $98 million or roughly 2x 2015 sales of $50 million. This doubles the size of NUVA’s current neuro-monitoring service business (Intra-Operative Monitoring (IOM), another regional player, which it originally acquired in 2011 for $80 million representing roughly 2-3x sales trailing 12 months and 2x its $40 million run rate at the time of acquisition). The deal is expected to close in early July and is expected to be immediately accretive both in terms of EPS and EBITDA--adding potentially a nickel to EPS in 2016. There is very little overlap (Biotronic is a regional player with strength mainly in Chicago), and the deal appears largely plug and play.

No change to Buy rating.

For an analyst ratings summary and ratings history on NuVasive click here. For more ratings news on NuVasive click here.

Shares of NuVasive closed at $57.37 yesterday.



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