UPDATE: J.P. Morgan Raises PT on NuVasive Despite Limited Growth Expectations
In a report published Wednesday, J.P. Morgan reiterated its Neutral rating on NuVasive (NASDAQ: NUVA), and slightly raised its price target from $20.00 to $21.00.
J.P. Morgan noted, “After years of impressive top-line growth, however, a number of factors converged in 2010 to drive a rapid deterioration in Nuvasive's fundamentals. The spine market, which had experienced a healthy double-digit CAGR for more than a decade, slowed to just 1-2% cc growth as payer pushback and pricing pressure weighed on sales. In addition to these market issues, Nuvasive faced increased competition in the MIS segment, with a proliferation of new lateral systems encroaching on the company's core XLIF franchise. Heading into 2013, the spine market outlook still looks poor and visibility into Nuvasive's sustainable growth trajectory remains limited. While Street expectations have reset, we believe evidence of improving fundamentals in the spine market broadly and in Nuvasive's growth profile specifically will be necessary to restore investor confidence.”
NuVasive closed on Tuesday at $18.42.
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