tiprankstipranks
Trending News
More News >

Globus Medical Faces Challenges: Hold Rating Amid Revenue Miss and Cautious Outlook

Bank of America Securities analyst Craig Bijou reiterated a Hold rating on Globus Medical (GMEDResearch Report) today and set a price target of $78.00.

Protect Your Portfolio Against Market Uncertainty

Craig Bijou has given his Hold rating due to a combination of factors impacting Globus Medical’s performance. The company faced a challenging first quarter, missing revenue expectations by 5% due to softer robot sales and other issues, which put pressure on its stock. Despite closing the Nevro deal earlier than expected, the reaffirmed guidance for FY25 suggests lower expectations for both Nevro and legacy Globus Medical, reflecting a cautious outlook.
Moreover, the company’s enabling technology revenue significantly underperformed, with robot deals taking longer to close, raising concerns about potential competitive pressures. Although there were no significant sales rep departures, supply disruptions and other challenges affected musculoskeletal revenue. Given these uncertainties and the need for consistent execution in upcoming quarters, Bijou maintains a Neutral stance, adjusting the price objective to $78 to account for these risks.

Disclaimer & DisclosureReport an Issue