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Investing.com - Piper Sandler has reiterated its Overweight rating and $80.00 price target on Globus Medical (NYSE:GMED) despite the stock being one of the worst performers in the medical device sector this year, with shares down nearly 27% year-to-date. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.47, suggesting strong fundamentals despite market performance.
The research firm acknowledged that Globus Medical shares have struggled following disappointing first-quarter results and negative investor reaction to the company’s Nevro (NYSE:NVRO) acquisition deal. Despite recent challenges, the company maintains robust financials with a healthy current ratio of 4.45 and impressive revenue growth of 32% over the last twelve months.
Piper Sandler noted some "unwanted dislocation" at Globus Medical but characterized these issues as "manageable," indicating that the Nevro deal is not currently "imploding" despite market concerns.
The firm pointed out that Nevro will negatively impact Globus Medical’s financial results both this year and next, suggesting that market analysts have not fully accounted for these effects in their projections.
Despite these near-term challenges, Piper Sandler described Globus Medical as "a high quality franchise" that should overcome current difficulties and deliver improved shareholder value by late 2025 and into 2026.
In other recent news, Globus Medical reported its first-quarter results for 2025, revealing unexpected shortfalls in revenue and earnings. These challenges were attributed to lower sales of Enabling Technology products and supply chain issues related to the integration of NuVasive (NASDAQ:NUVA). The company posted sales of $598.1 million, falling short of expectations, which led Oppenheimer to cut its price target from $90.00 to $78.00 while maintaining a Perform rating. Truist Securities also adjusted its outlook, reducing the price target to $68.00 but maintaining a Hold rating, citing concerns over prolonged deal closures in capital equipment sales. Meanwhile, BTIG downgraded Globus Medical’s stock from Buy to Neutral, expressing skepticism about the company’s ability to meet growth targets in its Spine business. Despite these setbacks, JMP analysts maintained their Market Perform rating, noting the company’s strong cash flow and debt-free status post-NuVasive merger. Additionally, Globus Medical announced a $500 million stock buyback program, emphasizing its commitment to long-term shareholder value. The buyback will be funded using existing cash reserves, reflecting confidence in the company’s financial health.
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