Uncertainties In Nevro's Core Business Lead To Revised FY24 Projections By Oppenheimer Analyst


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


  • Oppenheimer analyst Suraj Kalia reiterated an Outperform rating on the shares of Nevro Corp. (NYSE:NVRO), with a price target of $40.
  • Nevro lowered 2Q revenue guidance to $106 million-$108 million, below the analyst's estimate of $112 million and prior guide of $110 million-$112 million.
  • The analyst cautioned that it is unclear if the 2Q weakness is from the core spinal cord stimulation (SCS) or Painful Diabetic Neuropathy (PDN) segments.
  • The analyst cautioned that core SCS weakness would be expected, but PDN weakness is worrisome.
  • Nevro trades at a discount to the MedTech space at ~4.0x, based on the organic SCS business's tempered recovery. 
  • However, the analyst expects the new CEO to stabilize the ship and new product iterations/ introductions to provide call options.
  • Based on the above uncertainties, the analyst lowered FY23 revenue estimates to $430.1 million from the previous expectation of $450.4 million. 
  • For FY23, the analyst sees EPS loss of $(2.94) wider than the earlier estimate of $(2.35) loss. 
  • For FY24, the analyst lowered revenue estimates from $501.8 million to $480.8 million.
  • EPS for FY24 is expected to be $(2.22) loss, wider than the previous expectation of $(1.97) loss.
  • Price Action: NVRO shares are trading lower by 13.5% at $23.80 on the last check Tuesday.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: Analyst ColorEquitiesNewsHealth CarePrice TargetReiterationSmall CapMarketsAnalyst RatingsGeneralBriefsExpert Ideas