Leerink Partners Raises Price Target as Nevro's (NVRO) Guide Shows Increased Confidence
Leerink Partners reiterated an Outperform rating on Nevro Corp (NYSE: NVRO), and raised the price target to $80.00 (from $75.00), following the company's 4Q earnings report. NVRO reported sales of $33.1M, ahead of the Street at ~$24M. But more importantly, NVRO raised 2016 guidance to $155M-$165M from $145M-$155M previously, ahead of the Street at $150M. This raise comes just 2 months into the year, and shows growing confidence within the company's management team.
Analyst Danielle Antalffy commented, "As expected following its mid-January preannouncement, NVRO delivered 4Q15 sales of $33.1M -- ahead of us and the Street at ~$24M. But more importantly, NVRO raised 2016 guidance to $155M-$165M from $145M-$155M previously -- ahead of us and the Street at $150M -- just 2 months into the year, highlighting increasing confidence on the part of management that current Senza (spinal cord simulation) adoption momentum should be sustainable. Based on the durable safety and efficacy results as demonstrated in the 2-year Senza RCT clinical trial data presented at NANS last year, ongoing U.S. salesforce adds -- to "at least" 160 by year-end, up from 100 today, and our recent MEDACorp physician conversations, we believe there is even still more upside to numbers predicated on both stronger market share gains and also faster market growth as previously untreated predominant back pain patients can now be successfully treated."
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Shares of Nevro Corp closed at $57.60 yesterday.