Needham & Company LLC Reiterates Buy Rating for NuVasive (NUVA)

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NuVasive (NASDAQ:NUVA)‘s stock had its “buy” rating reaffirmed by research analysts at Needham & Company LLC in a research report issued on Wednesday. They presently have a $75.00 price objective on the medical device company’s stock. Needham & Company LLC’s price objective would suggest a potential upside of 19.98% from the stock’s previous close.

The analysts wrote, “NUVA’s 3Q18 revenue beat while its EPS missed. Management raised revenue guidance but lowered EPS guidance. Organic growth increased to 8% in 3Q18 from 5% in 2Q18 as improved domestic growth offset slower international growth. Operating margin was 220 bps below consensus as management decided to exploit an improving spine market by reinvesting in SG&A (up 70 bps Y/Y) and R&D (up 50 bps Y/Y). Gross margin met consensus and West Carrollton remains on track to deliver 130-150 bps of margin benefit in 2019. While the margin performance is frustrating, we expect the stronger growth combined with in-sourcing to drive better margin performance in 2019 and reiterate our Buy rating.””

A number of other brokerages have also commented on NUVA. BidaskClub raised NuVasive from a “buy” rating to a “strong-buy” rating in a research note on Friday, September 14th. ValuEngine raised shares of NuVasive from a “hold” rating to a “buy” rating in a research report on Wednesday, September 19th. Canaccord Genuity raised their target price on shares of NuVasive from $70.00 to $80.00 and gave the stock a “buy” rating in a research report on Tuesday, September 18th. Zacks Investment Research raised shares of NuVasive from a “sell” rating to a “hold” rating in a research report on Tuesday, August 21st. Finally, Cowen raised their target price on shares of NuVasive from $62.00 to $80.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 11th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and ten have given a buy rating to the company. NuVasive currently has an average rating of “Hold” and an average price target of $68.25.

NASDAQ NUVA opened at $62.51 on Wednesday. NuVasive has a fifty-two week low of $44.62 and a fifty-two week high of $72.41. The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of 32.73, a price-to-earnings-growth ratio of 1.67 and a beta of 0.69.

NuVasive (NASDAQ:NUVA) last released its quarterly earnings data on Tuesday, October 30th. The medical device company reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.06). NuVasive had a return on equity of 13.70% and a net margin of 3.96%. The business had revenue of $271.30 million during the quarter, compared to analysts’ expectations of $265.70 million. During the same quarter last year, the business posted $0.52 EPS. The company’s quarterly revenue was up 9.7% compared to the same quarter last year. As a group, sell-side analysts forecast that NuVasive will post 2.39 earnings per share for the current year.

A number of institutional investors have recently made changes to their positions in NUVA. Dimensional Fund Advisors LP lifted its position in NuVasive by 10.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,303,103 shares of the medical device company’s stock valued at $67,919,000 after acquiring an additional 121,467 shares during the period. Eagle Asset Management Inc. lifted its position in NuVasive by 12.8% during the 2nd quarter. Eagle Asset Management Inc. now owns 1,267,961 shares of the medical device company’s stock valued at $66,086,000 after acquiring an additional 143,926 shares during the period. Anchor Capital Advisors LLC lifted its position in NuVasive by 1,205.1% during the 2nd quarter. Anchor Capital Advisors LLC now owns 983,977 shares of the medical device company’s stock valued at $51,285,000 after acquiring an additional 908,582 shares during the period. Hood River Capital Management LLC lifted its holdings in shares of NuVasive by 261.3% during the second quarter. Hood River Capital Management LLC now owns 866,653 shares of the medical device company’s stock valued at $45,170,000 after purchasing an additional 626,770 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of NuVasive by 2.6% during the second quarter. Northern Trust Corp now owns 805,285 shares of the medical device company’s stock valued at $41,972,000 after purchasing an additional 20,070 shares during the last quarter.

About NuVasive

NuVasive, Inc, a medical device company, develops and markets minimally-disruptive surgical products and procedurally-integrated solutions for spine surgery. Its products focus on applications for spine fusion surgery, including ancillary products and services used to aid in the surgical procedure. The company's principal product is Maximum Access Surgery, a minimally-disruptive surgical platform, which includes its software-driven nerve detection and avoidance systems, and intraoperative monitoring (IOM) services and support; MaXcess, an integrated split-blade retractor system; and various specialized implants and biologics.

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Analyst Recommendations for NuVasive (NASDAQ:NUVA)

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