Globus Medical: Strong Fundamentals and Outperformance Largely Priced In, Justifying a Hold Rating

Needham analyst David Saxon has maintained their neutral stance on GMED stock, giving a Hold rating yesterday.

David Saxon has given his Hold rating due to a combination of factors tied to Globus Medical’s current performance and outlook. The company’s preliminary fourth-quarter 2025 revenue materially exceeded expectations, helped by a return to growth in its Enabling Technologies segment, solid high‑single‑digit to low‑double‑digit growth in Musculoskeletal Solutions, and contribution from the Nevro acquisition. Saxon likely anticipates upside to earnings versus consensus when full results are reported, reflecting both the strong top-line performance and ongoing integration progress with NuVasive and Nevro.

At the same time, management’s 2026 revenue and EPS guidance is already ahead of Street estimates, suggesting that much of the near‑term improvement may be reflected in investor expectations. While Saxon views the spine market backdrop as healthy and acknowledges Globus Medical’s market share gains, he also appears to recognize that these positives are at least partially priced into the stock at current levels. The Hold rating therefore reflects a balanced view: solid fundamentals and execution, but limited incremental upside relative to existing consensus and valuation. He also notes that the strong quarter is a constructive indicator for peers like ATEC and SIBN, rather than a company-specific inflection that alone would justify a more aggressive rating on GMED.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GMED in relation to earlier this year.