Globus Medical (GMED) Offers Light Guidance but Needham Sees Through Chatter and Raises PT to $75
- S&P 500, Dow climb for third day and close at records
- Tesla (TSLA) China Numbers 'Robust' - Wedbush
- Apple (AAPL) Shares Seen as 'Attractive' as Recent Checks Show Continuously Strong Demand - Citi
- Investors Poured More Money Into Stocks in Past 5 Months Than Last 12 Years, Says BofA, Analysts Worried About Stretched Valuations
- Amazon.com warehouse workers vote to reject forming union in Alabama
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Needham & Company analyst Mike Matson raised the price target on Globus Medical (NYSE: GMED) to $75.00 (from $65.00) after 4Q20 results suggest continued spine market share gains but the below-consensus 2021 guidance will likely take the focus. That said, accounting for expected headwinds to revenue (~$15-18M from COVID-19 in January) and EPS (~$0.19 from multiple factors), guidance would have been in line (~2% below consensus revenue and a penny above consensus EPS).
The analyst maintained a Buy rating, stating "We expect GMED to gain share in 2021 driven by new product launches, competitive rep hiring, and robotics pull-through." "Management provided 2021 revenue guidance of $880M vs. consensus of $914M. However, management estimates the US Spine headwind in January was ~$15-18M (worth ~2% to total 2021 growth), which appears to be easing into February. Despite a lingering impact from COVID-19, management expects positive growth in 1Q21. Further, GMED is converting its distributors in Japan to its direct sales force which is expected to result in an incremental headwind. Management also provided 2021 adjusted EPS guidance of $1.83 vs. consensus of $2.01. However, this incorporates headwinds from lower interest income (~$0.07), higher tax (~$0.07), and higher SBC (~$0.05)."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- S&P Global (SPGI) PT Raised to $414 at Stifel, Raises Estimates
- Takeuchi Mfg. Co., Ltd (6432:JP) (TKUGF) PT Raised to JPY3,400 at CLSA
- North West Co Inc. (NWC:CN) (NNWWF) PT Raised to Cdn$37 at TD Securities
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!