Globus acquisition of Nevro ‘fairly low-risk bet,’ says BTIG

BTIG says Globus Medical’s (GMED) announced acquisition of Nevro (NVRO) “is surprising on the surface.” Investors did not expect Globus would move into neuromodulation or pain stim as a market adjacency, especially as it digested its largest acquisition to date with NuVasive, the analyst tells investors in a research note. That said, Globus is buying Nevro for a very low amount of cash and the deal is “fairly low-risk bet,” contends BTIG. The firm believes Globus gains access to a few assets that are more complimentary than neuromodulation, and it also thinks that if the company can use Nevro’s pain stimulation channel to sell additional imaging technology, it will increase the value of Globus’; enabling technology ecosystem over time. Nevro could add $35M-$40M in operating profit in fiscal 2026, BTIG estimates. It keeps a Buy rating on Globus Medical with a $91 price target.