BofA/Merrill Lynch Reiterates Buy Rating on Nuvasive

BofA/Merrill Lynch is out with a research report this afternoon, where it reiterates its Buy rating on Nuvasive

; it has $23.00 a price target on the stock. The BofA/Merrill Lynch analysts cited the company's recent earnings results, which were worse than expected. The company also lowered 2011 revenue and organic margin guidance. As for valuation, the analysts remarked, “Our new PO of $23 implies a 1.7 multiple (in line with IART) on 2011 sales, 20.7 times non-GAAP 2012E earnings and 52.3 times 2012E GAAP earnings. Our new 2012 numbers assume 8% growth in 2012 spine revenues for NUVA.”