Freedom Capital Starts Livanova (LIVN) at Hold
Freedom Capital analyst Kei initiates coverage on Livanova (NASDAQ: LIVN) with a Hold rating and a price target of $81.00.
The analyst comments "LivaNova (LIVN): our near-to-mid-term expectations for organic sales growth (+MSD) and EBITDA growth (+HSD) appear priced in. We view LIVN’s marketleading cardiopulmonary business as a solid +MHSD growth driver with good visibility but limited potential for material outperformance. As such, meaningful share price upside will likely require a positive surprise from the US launch of aura6000 (neurostimulation) in OSA in 2027 or a positive decision from CMS on Symmetry reimbursement in depression (or both). Our near-term (2026-2027) total revenue estimates are mostly ~in-line with the Street (~0-1% below), while our EBITDA estimates are ~1-4% below the Street. We initiate coverage on LIVN with a HOLD rating and $81 price target based on ~12.5x 2027E EBITDA. Key thesis points include the following (see the body of the report for further detail) ○ Cardiopulmonary (CP) is a high-quality franchise growing above-market for now, but out-year (2028+) growth deceleration appears likely. ○ As noted above, the OSA market is attractive despite near-term issues, but it is unclear to us why aura6000 should be expected to win. ○ DRE market is also under-penetrated, but we expect LIVN’s VNS System to continue to lose ~1-2pp of share to RNS and DBS going forward, suggesting limited upside to LIVN’s +MSD growth target."
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Shares of Livanova closed at $83.06 yesterday.