Globus Medical Maintains Strong Buy Rating Despite Decreased Price Target

Wells Fargo analyst Vik Chopra maintained a Buy rating for Globus Medical (GMED) despite decreasing the price target to $93.00 from $95.00. Chopra's rating is based on strong Q4 financial performance, exceeding estimates, and the anticipated NVRO acquisition, which will complement Globus Medical's existing portfolio. The company has also shown growth in its robotics segment and achieved significant cost savings from the NUVA integration. BTIG also reiterated a Buy rating with a $94.00 price target. GMED's price has increased by 21.67% over the past six months.

Globus Medical, Inc. (GMED) recently reported impressive fourth-quarter financial results, surpassing analysts' estimates. This strong performance, coupled with the anticipated acquisition of Nevro Corporation (NVRO), has led two prominent analysts, Vik Chopra of Wells Fargo and the Barclays team, to maintain their bullish outlook on the stock [1].

Vik Chopra, a 4-star analyst with an average return of 13.6% and a 64.15% success rate, reiterated his Buy rating for GMED, citing the strategic acquisition of Nevro as the primary catalyst [1]. The deal, which is expected to be accretive to earnings by the second half of 2026, will significantly enhance GMED's market position by leveraging Nevro's Spinal Cord Stimulation (SCS) technology and integrating it with GMED's existing capabilities [1].

Moreover, GMED's management has a clear plan to convert existing surgeons using competitive SCS technologies to Nevro's solutions, maintaining the sales team to ensure continuity, and incentivizing growth [1]. With projected revenue growth and the expectation of achieving cost synergies, the company is well-positioned to improve operational efficiency.

According to TipRanks, Chopra is not alone in his bullish sentiment. Barclays also maintained a Buy rating on the stock with a $100.00 price target [3]. This optimistic outlook is shared by 4 out of the 11 analysts covering GMED in the past three months, with a total of 4 Buy ratings [3].

Despite these bullish sentiments, it is essential to consider that the stock has already experienced significant growth over the past six months, with a 21.67% increase [1]. As always, investors should conduct their own research and consider their individual risk tolerance before making investment decisions.

References:
[1] TipRanks. (2023, February 15). Strategic acquisition of Nevro positions Globus Medical for long-term growth and market leadership. Retrieved from https://www.tipranks.com/news/ratings/strategic-acquisition-of-nevro-positions-globus-medical-for-long-term-growth-and-market-leadership
[2] Vik Chopra. (n.d.). Vik Chopra. Retrieved from https://stockanalysis.com/analysts/vik-chopra/
[3] Benzinga. (2023, February 15). Evaluating Globus Medical: Insights from 11 Financial Analysts. Retrieved from https://www.benzinga.com/insights/analyst-ratings/24/12/42266202/evaluating-globus-medical-insights-from-11-financial-analysts