Analyst Caitlin Cronin of Canaccord Genuity maintained a Buy rating on Globus Medical (GMED – Research Report), retaining the price target of $101.00.
Caitlin Cronin has given her Buy rating due to a combination of factors related to Globus Medical’s strategic acquisition of Nevro Corp. The acquisition was completed earlier than anticipated, which positions Globus Medical to exceed its initial revenue guidance for 2025. The integration of Nevro is expected to be earnings accretive by the second year, with plans to enhance operational efficiencies, particularly in SG&A.
The acquisition not only broadens Globus Medical’s portfolio into spinal cord stimulation with high-frequency offerings but also strengthens its commercial presence in key interventionalist markets. This strategic move is seen as Globus Medical taking an offensive approach to expand its capabilities and market reach. The valuation supporting the Buy rating is based on a projected 26.1x P/E multiple for 2025 earnings, reflecting a premium over the mean MedTech peer group.
In another report released on April 15, RBC Capital also maintained a Buy rating on the stock with a $101.00 price target.