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Globus acquisition of Nevro complicates story, says Stifel

Stifel Globus Medical’s (GMED) announced acquisition of Nevro (NVRO) an “unexpected move.” The firm says that while it wants to be “open-minded,” its initial thoughts are this is a surprising move, timing-wise, and also market and asset selection. The acquisition complicates a “fairly straightforward upside/multiple expansion story” for Globus and introduces another round of forward risks as NuVasive risks fade, the analyst tells investors in a research note. Stifel keeps a Buy rating on Globus Medical with a $92 price target. The stock in midday trading is down 4% to $88.30.

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