Mathew Blackman, an analyst from Stifel Nicolaus, maintained the Buy rating on Globus Medical (GMED – Research Report). The associated price target remains the same with $92.00.
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Mathew Blackman has given his Buy rating due to a combination of factors surrounding Globus Medical’s strategic acquisition of NVRO. The acquisition is seen as a move that could potentially enhance GMED’s position in the Spine market, which is projected to remain robust with mid-single-digit growth. Blackman highlights that the acquisition, although presenting some integration risks, aligns with GMED’s growth-diversification strategy, particularly in the expanding ‘Pain’ channel.
Another reason for the Buy rating is the timing of the acquisition, which coincides with the near completion of the US NUVA integration. This suggests that GMED is well-positioned to capitalize on new opportunities without compromising its existing market share and revenue goals. Additionally, despite the challenges in the SCS market, the acquisition of NVRO is viewed as a strategic move to access valuable technology and create a scalable channel, potentially leading to future growth and cross-selling opportunities.
In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 price target.