Morgan Stanley Downgrades Nevro Corp (NVRO) to Underweight

Morgan Stanley analyst Kallum Titchmarsh downgraded Nevro Corp (NYSE: NVRO) from Equalweight to Underweight with a price target of $4.00 (from $9.00).

The analyst comments "Nevro (NVRO) has had a rough year, with numerous headwinds seen across its SCS business and limited evidence of Vyrsa takeoff (though we appreciate it's very much been a formative year for the latter). We downgrade the stock to UW from EW for a number of reasons: 1. We expect the SCS market to remain challenged, and believe there's growing interest in competitor products, 2. We are skeptical on how much cost can be ripped out of the business without negatively impacting topline growth, 3. We don't see any logical strategic optionality. We provide more color on each of these points below and we now see better options in our coverage universe despite the stock trading around all-time lows. Our PT is lowered from $9 to $4."

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

Shares of Nevro Corp closed at $4.60 yesterday.

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