Citi Moves to Sidelines Nevro Corp (NVRO), Moves to Neutral, 'uncertainty remains high'
Citi analyst Joanna Wuensch upgraded Nevro Corp (NYSE: NVRO) from Sell to Neutral with a price target of $6.89.
The analyst comments "With the 2Q24 print (link), we are upgrading NVRO to Neutral from Sell. While the quarter itself was fairly benign, the full-year revenue guidance cut to $400-$405M from $435-$445M was unexpected, sending shares down 44% post print. With shares now down 73% YTD and trading at <0.5x NTM revenue, we believe there is little near-term optimism baked into the stock and it is likely management was trying to clear the deck with the revised guidance. We are encouraged that it is exploring strategic alternatives more urgently, although our base case does not assume that Nevro gets acquired or undergoes a merger. While we believe that numbers are adequately set for 2024E, uncertainty remains high, and we await more clarity on: 1) underlying growth of the U.S. SCS market; 2) competition; and 3) Vyrsa adoption before potentially getting more constructive on the name."
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Shares of Nevro Corp closed at $4.83 yesterday.