Goldman Sachs maintain Neutral on NuVasive
Friday, January 20, 2022 10:36 AM

Goldman Sachs maintained its Neutral rating on NuVasive (NUVA) shares as risk/reward fairly balanced at current levels. The brokerage also maintained its 12-month price target of $14.00 based on DCF and price earning with an M&A component.

The brokerage believes near-term investor concentration will remain on the outcome of the hearing of an injunction in connection with Medtronic on January 26 and the final decision of the judges, which is due in March or April. The stock is down 56 percent over the past six months versus the Russell 2000 fall of 56 percent.

Analyst Donald Roman sees limited downside from these events despite significant sell-off in the stock. There is no compelling reason to step in here on the basis of continued weakness in end-user markets, larger competition and balanced risk/reward.

However, the analyst believes there is room for upside if NuVasive maintains its existing share in MIS. The brokerage lists competitive launches and end-user market weakness for downside risks. For upside, analyst lists share gains, larger EBIT leverage and industry strategic activity.