Globus Medical Analyst Roundup Following Preliminary Q4 Results

Shares of Globus Medical Inc GMED surged 4.82 percent to $24.58 Monday after reporting strong Q4 preliminary results on Tuesday.

Analysts commented on the stock following the report. Below are highlights along with current ratings and price targets.

Oppenheimer - Outperform, $26 price target

“On Tuesday after the close, GMED pre-announced 4Q14 revenue of $128.5M, ahead of our/Street's $122.2M/$121.6M despite a tough comparison. Revenue was up 11.5% y/y as the company benefited from the ramping of new sales hires (including the particularly strong new hire growth in '13), some recovery in the lost distributor region and increased biologics contribution. The initial '15 sales guidance looks conservative following the 4Q beat on the aforementioned drivers. While the company will increase its investment this year in its robotics opportunity ahead of '16 launch, the initial '15 EPS guidance appears conservative as well.”

JMP - Market Outperform, $29 price target

“We remain positive on the shares of GMED for four primary reasons: 1) the company racked up another beat; 2) we believe the core business is driving the results; 3) pricing was likely stable; and 4) we view 2015 guidance as potentially conservative. Our revised $29 price target is based on an ~12-13x EV/EBITDA multiple (unchanged) applied to our 2016 EBITDA estimate of ~$194M (vs. 2015 previously). We will revisit our model post the release of the full P&L (likely in late February). The pre-announcement was offered in advance of the company's national sales meeting later this week.”

Brean Capital - Buy, $28 price target

Guidance for 2015: calls for 8 percent revenue growth (5 percent excluding an expected $12 million from the Transplant Technologies of Texas acquisition) and EPS of $1.01. Even though this implies twice the market rate (spine is growing 3 percent currently, but see upside from improving economic, insurance, and pressure on Physician Owned Distributors (PODs)), management is purposely taking a more conservative approach this year to guidance, and we doubt investors will be discouraged. We are tweaking our numbers down slightly, to $513 million from $515 million and our EPS to $1.01 from $1.05—the latter mainly reflects an expectation of increased spending on the robotics platform in 2015.”