Globus Medical (GMED) PT Raised to $72 at BTIG

BTIG analyst Ryan Zimmerman raised the price target on Globus Medical (NYSE: GMED) to $72.00 (from $63.00) while maintaining a Buy rating.

The analyst comments "1Q24 market dynamics within Spine appeared to have caught some investors off-guard. Expectations for Globus Medical (GMED, Buy, $72 PT) were weak into results. While we saw the opportunity for a beat (here), investors we spoke with ahead of 1Q24 results were worried about the likelihood of a softer print as a result of headcount reductions in late FY23 from the merger. Bears expected the impact to be felt in 1Q24. At the same time, we believe investors assumed that Alphatec (ATEC, Not Rated) would put up a larger beat as a result of potential disruption stemming from GMED (and others in the industry). ATEC exceeded expectations by 2.9% but shares still fell ~22% post earnings suggesting that the beat was not enough. Investors may have assumed ATEC's growth would have been larger in the context of GMED's disruption. Either way, there was almost a completely inverse move in share price by the two companies (Figure 1). As the dust settles on CY1Q24 and with Medtronic (MDT, Neutral), the last to report, we wanted to take a closer look at overall Spine market dynamics, share, and growth, and provide some additional commentary on where we believe the sector may be heading. We have to tip our hats to Medtronic, 8.7% growth in their Cranial & Spinal Technologies group is impressive and points to the success they are having with their Aible Ecosystem. We raise our GMED PT to $72 (from $63) as we underestimated the extent of the re-rating GMED shares would have upon a better than expected quarter."

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