Jefferies lifts Livanova stock price target to $79 from $74

Published 07/05/2025, 21:54
Jefferies lifts Livanova stock price target to $79 from $74

On Wednesday, Jefferies analyst Anthony C. Petrone increased the price target for Livanova stock, listed on (NASDAQ:LIVN), from $74.00 to $79.00, while reiterating a Buy rating. The medical technology company, with a market capitalization of $2.38 billion, has maintained strong financial performance with a healthy gross margin of 69.58%. Petrone’s adjustment followed Livanova’s first-quarter 2025 sales report, which showed a revenue of $317 million, marking an 8.9% growth on a constant currency basis, exceeding consensus estimates of $302 million. The company’s earnings per share (EPS) also surpassed expectations, coming in at $0.88 compared to the consensus of $0.76. According to InvestingPro, the company maintains excellent financial health with an overall score of 3.1 out of 5.

Livanova raised its full-year 2025 revenue guidance to a range of 6-7% growth on a constant currency basis (7-8% on an organic basis), up from the previous forecast of 5-6%. However, the company adjusted its EPS guidance downward to $3.60-3.70, from the prior range of $3.65-3.75, citing the impact of the SNIA (Italian National Autonomic System Index) and tariffs. The company’s strong liquidity position is evidenced by a current ratio of 2.87, indicating robust ability to meet short-term obligations.

The analyst expressed optimism about the company’s growth trajectory, highlighting the strong performance in the Heart-Lung Machine (HLM) segment and successful commercial execution in the Neuro division outside the United States. Petrone’s commentary underscored the belief in Livanova’s growth prospects and pipeline optionality, which supports the raised financial projections and price target.

In summary, the revised price target reflects Jefferies’ confidence in Livanova’s growth, particularly in the HLM and Neuro segments, despite the adjustments made to the EPS forecast due to external factors. The company’s upward revision of its revenue guidance and the reported earnings beat have contributed to this positive outlook.

In other recent news, LivaNova PLC reported first-quarter earnings and revenue that exceeded analyst expectations and subsequently raised its full-year guidance. The company posted adjusted earnings per share of $0.88, surpassing the consensus estimate of $0.76. Revenue reached $316.9 million, beating analysts’ projections of $302.38 million and marking a 7.4% year-over-year increase on a reported basis, with a 10.4% growth on an organic basis. LivaNova’s cardiopulmonary segment experienced a revenue rise of 13.1% year-over-year to $176.3 million, while neuromodulation revenue grew 3.8% to $138.9 million. The company adjusted its full-year 2025 revenue growth guidance to 6.0% to 7.0% on a constant-currency basis and 7.0% to 8.0% on an organic basis, up from previous ranges. It now anticipates adjusted earnings per share of $3.60 to $3.70 for the year, compared to the analyst consensus of $3.58. The updated guidance takes into account the impact of a recent Italian Supreme Court decision on environmental liabilities and current tariffs. Additionally, LivaNova announced the completion of its premarket approval submission to the FDA for its aura6000 System, designed to treat obstructive sleep apnea.

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