In a report released yesterday, Michael Polark from Wolfe Research upgraded LivaNova (LIVN – Research Report) to a Buy, with a price target of $60.00.
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Michael Polark has given his Buy rating due to a combination of factors that suggest a favorable outlook for LivaNova’s stock. The base case scenario indicates a potential stock price increase to $60, driven by a sustainable real growth rate in cardiopulmonary and epilepsy segments. This growth is supported by the company’s commitment to expanding oxygenator capacity, which is expected to enhance supply capabilities significantly by 2026.
Additionally, the potential value of the company’s pipeline, particularly in sleep apnea and depression treatments, adds to the bullish outlook. Although there is skepticism regarding Medicare coverage for depression, recent management comments have been more optimistic than anticipated. Furthermore, the ongoing product cycle in heart-lung machines is expected to contribute to high single-digit growth through 2027, reinforcing the positive sentiment around LivaNova’s future performance.
In another report released on May 13, Needham also maintained a Buy rating on the stock with a $64.00 price target.