Musk threatens Apple with legal action over App Store bias towards OpenAI
On Thursday, JMP analysts maintained their Market Perform rating for Globus Medical (NYSE:GMED) stock, currently trading at $74.28 with a market capitalization of $10.22 billion. The analysts' stance remains steady after reviewing comments from the company's management about the expected quarterly sales distribution throughout 2025. According to InvestingPro data, the company's stock is slightly undervalued, with analyst price targets ranging from $82 to $115. The company had previously reported its fourth-quarter earnings for 2024, which met expectations, and provided preliminary guidance for 2025.
Globus Medical had set its initial 2025 sales forecast on a standalone basis at $2.66 to $2.69 billion, indicating a year-over-year increase of 6% to 7%, and an adjusted earnings per share (EPS) range of $3.40 to $3.50. Taking into account the recent acquisition of Nevro, the net sales for the fiscal year 2025 are projected to be between $2.80 billion and $2.90 billion, with net EPS estimated to be in the range of $3.10 to $3.40. The company has demonstrated strong growth, with revenue increasing by 60.62% over the last twelve months. InvestingPro analysis reveals 8 additional key insights about Globus Medical's growth prospects and financial health.
At a recent conference, Globus Medical's management provided additional details on the expected quarterly sales cadence for 2025. Based on this new information, JMP analysts have revised their quarterly revenue estimates, which will also lead to adjustments in their quarterly earnings projections. However, they emphasized that the annual projections for both revenue and earnings are unchanged.
The reiteration of the Market Perform rating suggests that JMP analysts believe Globus Medical's stock is expected to perform in line with the broader market or the sector average. This rating indicates that the stock is neither significantly undervalued nor overvalued at the current price level, according to the analysts' assessment. InvestingPro data shows the company maintains a strong financial health score of 3.43 (rated as "GREAT"), with a healthy current ratio of 2.54 and robust cash flows. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Investors in Globus Medical will be watching closely as the company progresses through the fiscal year 2025, tracking the impact of the Nevro transaction and the company's ability to meet its sales and earnings targets as outlined by management.
In other recent news, Globus Medical reported fourth-quarter revenue of approximately $657.3 million, reflecting a 6.6% year-over-year growth, with adjusted earnings per share (EPS) of $0.84, surpassing the Street's estimates. Following these results, BTIG raised its price target for the company to $94, maintaining a Buy rating. Similarly, Stifel also kept a Buy rating with a $94 target, emphasizing potential earnings per share accretion from the Nevro merger. Meanwhile, Truist Securities adjusted its price target to $82, maintaining a Hold rating, citing recent market conditions and the Nevro acquisition.
Truist's analysis noted a revised forecast for Globus Medical's quarterly revenue distribution, while highlighting potential risks from the Nevro merger. Despite this, the full-year revenue and EPS estimates for 2025 remain unchanged. Additionally, Globus Medical has launched new spine surgery solutions, including the COHERE™ ALIF Spacer and Modulus™ ALIF Blades, aimed at enhancing surgical outcomes. These product launches underscore the company's commitment to innovation in spine surgery, as stated by its leadership.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.