Needham & Company maintained a Buy rating on K2M Group Holdings (NASDAQ: KTWO), and cut the price target to $25.00 (from $30.00), following the company's 3Q earnings results. Revenue was $55.0M vs. consensus of $53.7M, and GAAP EPS was ($0.25) vs. consensus of ($0.20). Management raised its 2015 revenue guidance to 17-18% CC growth (or $216-218M) from 15-17% CC growth vs. consensus of $216.5M.

Analyst Mike Matson commented, "KTWO's 3Q15 revenue and EBITDA beat consensus and management raised its revenue guidance. KTWO continued to gain share in the spine market during 3Q15 with growth driven by a combination of new products and expanding distribution. KTWO also continued to drive its operating margin higher primarily with SG&A leverage. While we have lowered our price target given peer multiple compression, we believe that guidance remains conservative and that KTWO shares are attractively valued and we reiterate our Buy rating."

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Shares of K2M Group Holdings closed at $18.28 yesterday.