JMP Securities analyst David Turkaly downgraded Nevro Corp (NYSE: NVRO) from Market Outperform to Market Perform.

The analyst comments: "We are downgrading our rating on shares of Nevro Corp. to Market Perform from Market Outperform following the release of 2Q24 results. All in, sales came in below expectations, and full year guidance was cut (now calls for 2H24 double-digit y/y declines in sales and a significantly expanded EBITDA loss at the midpoints). This is despite the fairly recent addition of newer SCS indications (like PDN and NSRBP), a new platform launch (HFX iQ in early 2023) and the Vyrsa SI joint therapy acquisition (late 2023), which likely means that declines in NVRO's legacy chronic leg and back pain business are more than offsetting these top-line contributions (due to overall market volumes and-or potential share losses). Management highlighted de novo softness in the U.S. SCS market driven by earlier therapeutic interventions (i.e., MIS SI joint fusion and PNS) and physician trialing of two new product launches by larger competitors as the primary culprits, which they expect to be temporary, but to continue into 2025 nonetheless."

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Shares of Nevro Corp closed at $8.69 yesterday.