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Investing.com - Barclays (LON:BARC) raised its price target on Globus Medical (NYSE:GMED) to $106.00 from $103.00 on Friday, while maintaining an Overweight rating on the medical device company’s stock. According to InvestingPro data, the stock currently trades at $57.78, significantly below its Fair Value, with analysts’ targets ranging from $65 to $105.
The price target increase follows Globus Medical’s earnings beat, which was driven by 7.4% underlying U.S. spine growth, sales and margin upside from NVRO, and improving robot trends. The company maintains strong fundamentals with a healthy gross profit margin of 67% and revenue growth of 17.4% over the last twelve months.
Barclays noted that Globus Medical is on track to exit the year with over 30% EBITDA margins and improving organic growth, supporting the firm’s positive outlook on the stock.
The new $106 price target is based on a 13.5x EV/EBITDA multiple on Barclays’ projected next-twelve-months EBITDA of $1.03 billion, looking one year forward.
The increase in the price target primarily reflects declines in projected net debt and the rolling forward of the EBITDA basis by one quarter, now comprising the second half of 2026 and first half of 2027.
In other recent news, Globus Medical reported preliminary second-quarter 2025 revenue of $745 million, surpassing the consensus estimate of $740 million. However, the company’s base business results of $651 million fell short of the $664 million consensus expectation. The company also announced the appointment of Keith Pfeil as the new President and CEO, effective July 18, 2025, following Daniel Scavilla’s resignation. In addition, Globus Medical has expanded its Excelsius navigation capabilities with the introduction of the DuraPro oscillating system, aimed at enhancing spine surgery workflows. Meanwhile, Needham maintained its Hold rating on Globus Medical amid the CEO transition and revenue announcements. Piper Sandler reiterated its Overweight rating on the company, despite challenges following disappointing first-quarter results and reactions to the Nevro acquisition. Separately, Dentsply Sirona named Daniel Scavilla as its new CEO, effective August 1, 2025, following his departure from Globus Medical. Scavilla’s leadership at Globus included a significant $3 billion acquisition, highlighting his extensive experience in the medical technology industry.
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