Rodman & Renshaw Outperform on NuVasive

Rodman & Renshaw is out with a research report on NuVasive, Inc NUVA and it has an Outperform rating and a $33 price target. In a note to clients, Rodman & Renshaw writes, " The announcement, in our opinion, will have more of a psychological impact on NUVA stock rather than a shift in fundamentals. Reason being – the company's constant drumbeat of “offensive and defensive” strategies seems to have fallen flat. While this might be farfetched, maybe it's time for NUVA to consider selling itself. Reason being – 1) the luster from the spine surgery space is coming off, 2) competition, especially with more percutaneous technologies including expandable cages could gradually reshape the landscape, 3) Growth will likely slow down over time given pending changes in Medicare & Medicaid, and 4) the law of diminishing returns probably would suggest that it's better to get out now than wait for a rainy day." Shares of NUVA are off $1.70 to $19.51, a loss of 8.02%.