Canaccord Genuity Reiterates Buy Rating on Globus Medical Following Synthes Legal Verdict
In a report published Monday, Canaccord Genuity analyst William J. Plovanic reiterated a Buy rating and $22.00 price target on Globus Medical (NYSE: GMED).
In the report, Canaccord Genuity noted, “We reiterate our BUY rating following a negative ruling in the company's patent infringement lawsuit with Synthes (Johnson & Johnson). Globus was found to have infringed on three of Synthes' patents, and ordered to pay $16M in damages (~15% royalty rate on ~$107M in revenues). We expect Globus will take the full charge in the Q2/13, and will work through the appeals process. Net, net, while any negative legal ruling is a negative, we believe this case demonstrates Globus' fast-follower strategy which utilizes quick product iterations, and a sound legal strategy to minimize business risk by preventing wilful patent infringement and injunctions.”
Globus Medical closed on Friday at $15.19.
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