Matthew Taylor, an analyst from Jefferies, reiterated the Buy rating on Globus Medical (GMED – Research Report). The associated price target is $75.00.
Matthew Taylor’s Buy rating on Globus Medical (GMED) arises from a comprehensive analysis of the company’s recent financial performance and strategic initiatives. Taylor underscores the company’s impressive fourth-quarter sales, which soared by 124% to $615.5 million, notably surpassing consensus estimates of $602.5 million. This growth was partly fueled by the successful integration of NuVasive, Inc. (NUVA) following its acquisition. The solid performance excluding NUVA sales, which saw a 10.4% year-over-year increase, also demonstrates the company’s robust core business growth. Additionally, Taylor is encouraged by management’s effective integration execution and their confidence in sales retention, pointing towards a positive outlook for the company.
Furthermore, Taylor’s optimism is bolstered by Globus Medical’s forward guidance, which aligns with consensus expectations, and the anticipated cost synergies and revenue opportunities following the merger. The company forecasts significant cost savings starting in 2024, aiming for a mid-30% EBITDA margin over the next few years and expecting the NUVA deal to be earnings accretive within the first year. Taylor also notes the company’s commitment to investing in its sales representatives, positioning them to benefit from the combined product portfolio. The projected cost synergies and the potential for accelerated earnings per share growth due to the merger contribute to the rationale behind the Buy rating.
According to TipRanks, Taylor is a 5-star analyst with an average return of 9.9% and a 62.01% success rate. Taylor covers the Healthcare sector, focusing on stocks such as Dexcom, Becton Dickinson, and Boston Scientific.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $61.00 price target.
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Globus Medical (GMED) Company Description:
Globus Medical, Inc. operates as a medical device company that develops and commercializes healthcare solutions. The firm engages in developing products that promote healing in patients with musculoskeletal disorders. It classifies products into Innovative Fusion and Disruptive Technology. It operates through the United States and International geographical segments. The company was founded by David C. Paul, David D. Davidar and Andrew Iott in March 2003 and is headquartered in Audubon, PA.
Read More on GMED:
- Globus Medical Reports Preliminary Record Fourth Quarter and Full Year Sales Results
- Globus Medical price target lowered to $83 from $86 at Barclays
- Globus Medical price target raised to $58 from $53 at Truist
- Globus Medical price target raised to $71 from $67 at Canaccord
- Globus Medical price target lowered to $53 from $60 at Morgan Stanley
