NuVasive: Needham turns bullish on rapid recovery in surgery volumes

NuVasive

23/06/2020 11:32

** Needham upgrades stock of surgical products maker
 NUVA.O  to "buy" from "hold" due to the faster-than-expected
recovery in elective surgery volumes that were affected due to
the COVID-19 pandemic
    ** Brokerage expects the upcoming Pulse robotics system
launch to drive faster rev growth; says the full launch is
expected in H1 2021
    ** Also says NUVA is undervalued and is a potential
acquisition target, with the likelihood of a deal being greater
if stock remains depressed
    ** Expects NUVA, along with many of its peers, to beat
consensus estimates over the next few qtrs on faster rebound
    ** Sets NUVA's PT at $74
    ** 8 of 17 brokerages rate the stock "buy" or higher, 7
"hold" and 2 "sell"; median PT is $67
    ** Up to Monday's close, stock fell ~27% YTD

 (Reporting by Saumya Sibi Joseph in Bengaluru)
 ((saumya.joseph@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6182 2676; Twitter: @SaumyaSibi;))