Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Wolfe Research upgraded Livanova stock, traded on (NASDAQ:LIVN), from a Peer Perform to an Outperform rating, while setting a new price target at $60.00. The upgrade comes after a period where Livanova was rated as Peer Perform following a downgrade from a previously positive stance. The medical technology company, with a market capitalization of $2.4 billion and impressive gross margins of 69%, has shown strong recent performance according to InvestingPro data.
The reasons behind the upgrade are multifaceted. Wolfe Research pointed to a more attractive valuation following a compression, and the resolution of legal issues in Italy that concluded with liabilities slightly below the worst-case scenario anticipated. This lifting of the legal overhang is seen as a positive development for the company. InvestingPro analysis suggests the company is currently undervalued, with analysts expecting a return to profitability this year despite recent challenges.
In addition, Livanova has confirmed plans to increase the capacity of its oxygenator products, which account for approximately 30% of the company’s total revenue. This expansion is expected to significantly boost the company’s supply capabilities from 2026 onwards, reinforcing the projected growth trajectory of its Cardiopulmonary segment.
Further bolstering the analyst’s optimism is the latest data on Livanova’s sleep apnea treatments, which continue to show competitive results. Despite maintaining a cautious stance, Wolfe Research also noted that Livanova’s management has recently expressed a cautious but more optimistic outlook than expected regarding the potential for Medicare coverage for depression treatments.
The combination of these factors has led Wolfe Research to reassess Livanova’s stock, resulting in the upgraded rating and increased price target, reflecting a renewed confidence in the company’s growth prospects and market position. With revenue growth of 7.62% and multiple positive indicators identified by InvestingPro, including expectations of net income growth, investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively to subscribers.
In other recent news, LivaNova reported first-quarter earnings and revenue that exceeded analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.88, surpassing the consensus estimate of $0.76. Revenue reached $317 million, a notable increase from the anticipated $302 million, marking an 8.9% growth on a constant currency basis. Following these results, LivaNova raised its full-year 2025 revenue growth guidance to 6-7% on a constant-currency basis and 7-8% on an organic basis. However, the company adjusted its EPS guidance downward to $3.60-3.70 due to factors like the SNIA and tariffs.
Jefferies analyst Anthony C. Petrone responded to these developments by raising the stock price target for LivaNova from $74 to $79, maintaining a Buy rating. Petrone highlighted strong performances in the Heart-Lung Machine and Neuro divisions as key contributors to the company’s growth prospects. Additionally, LivaNova announced it completed its premarket approval submission to the FDA for the aura6000 System, aimed at treating obstructive sleep apnea. The company’s cardiopulmonary and neuromodulation segments also reported significant revenue growth, further supporting the positive outlook.
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