Nevro Initiated With Buy Rating At Bank Of America


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.


Bank of America Merrill Lynch has started coverage of Nevro Corp (NYSE: NVRO) with a Buy rating and price objective of $100, implying a potential return of 24 percent.

Nevro's Senza Spinal Cord Stimulation (SCS) system delivers HF10 (high frequency) therapy to treat patients suffering from chronic pain.

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"In a field where clinical data are limited, NVRO has generated Level 1 clinical data supporting the efficacy of the Senza system in treating both back pain and leg pain and is considered to be a technological breakthrough in the spinal cord stimulation field," analyst Bob Hopkins wrote in a note.

No wonder, the FDA approved the Senza system in May 2015 and gave the Senza system a superiority label over traditional spinal cord stimulation devices and paresthesia-free indication.

"In our view, the Senza system is technologically superior to the competition, eliminates the pins-and-needles feeling of competitive devices, has gained a 'superiority' label from FDA, and is easier to implant than competitive devices," Hopkins continued.

The analyst said Nevro targets the $1.6 billion pain stimulation market, which he forecast to be a 10 percent growth market that could ultimately be $3 billion–$4 billion size.


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"Our 2020 NVRO model assumes ~25 percent market share and a $2.5b market, but we see upside to both our market share and market size estimates. On our estimates, 2020 earnings power could be in the $2.50–3.00 range," Hopkins elaborated.

For 2016, the analyst expects EPS of ($1.73) and revenue of $205 million.

Nevro is reporting its second-quarter results on Monday after the market. Street expects a loss of $0.47 and revenue of $45.11 million.

At the time of writing, shares of Nevro were up 0.83 percent to $81.22.

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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.


Posted In: Analyst ColorLong IdeasPrice TargetInitiationAnalyst RatingsTrading IdeasBob HopkinsBofA Merrill Lynch