Barclays Maintains an 'Overweight' on NuVasive (NUVA); Stable US Trends; Lower OUS/Biologics Revenue
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Price: $39.75 --0%
Rating Summary:
11 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on NuVasive (NASDAQ: NUVA) price target of $25.00.
Barclays analyst says, "While there was a blip in OUS growth, NUVA continues to take share in US lumbar (65% of sales), growing 6% in a market down low-single digits, and is growing cervical revenue ~20%. Further, given that the industry is changing, NUVA called out a goal to restructure its approach to support strong top-line growth with solid operating margin improvements ("more closely align spending patterns with current revenue growth"). Net-net, while the revenue result was a bit light this quarter and we expect a mixed reaction in the shares tomorrow, NUVA still grew 11% in a down market. We continue to view NUVA as an opportunity given the growth and pipeline (AttraX, PCM and Japan approval in 2012) and believe that comments on operating margin improvements will be well received but may take time to show. Given the growth, we view NUVA's current valuation (1.2x 2012 revenue) as compelling."
For more ratings news on NuVasive click here and for the rating history of NuVasive click here.
Shares of NuVasive closed at $17.79 yesterday.
Barclays analyst says, "While there was a blip in OUS growth, NUVA continues to take share in US lumbar (65% of sales), growing 6% in a market down low-single digits, and is growing cervical revenue ~20%. Further, given that the industry is changing, NUVA called out a goal to restructure its approach to support strong top-line growth with solid operating margin improvements ("more closely align spending patterns with current revenue growth"). Net-net, while the revenue result was a bit light this quarter and we expect a mixed reaction in the shares tomorrow, NUVA still grew 11% in a down market. We continue to view NUVA as an opportunity given the growth and pipeline (AttraX, PCM and Japan approval in 2012) and believe that comments on operating margin improvements will be well received but may take time to show. Given the growth, we view NUVA's current valuation (1.2x 2012 revenue) as compelling."
For more ratings news on NuVasive click here and for the rating history of NuVasive click here.
Shares of NuVasive closed at $17.79 yesterday.
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