Brean Murray Carret & Co. Downgrades NuVasive (NUVA) to Hold on Warning; Globus (GMED), Orthofix (OFIX) Benefit

Brean Murray Carret & Co. downgraded NuVasive (NASDAQ: NUVA) from Buy to Hold after last night's warning.

"The miss was due to weakness in the core US Lumbar business (IOM was also weak), but it had less to do with the competitive positioning, and the pipeline, which we had been focused on, and more to do with shifting market dynamics. Specifically, NUVA estimates it lost $15-25 million of annualized business, with half the loss coming from physician practices switching to Physician Owned Distributors (PODs)--which NUVA doesn’t do business with--and the other half from poached sales reps (about 50%)."

The firm believe Globus (NASDAQ: GMED) and to a lesser extent Orthofix (NASDAQ: OFIX) were the primary beneficiaries.

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 $22.62 yesterday.

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