CVRx assumed with a Buy at Craig-Hallum

Craig-Hallum assumed coverage of CVRx with a Buy rating with a price target of $23, down from $30. The firm says that in a surprising turn of events, CVRx posted a challenging Q4, with sales missing consensus, guidance being lowered, and all while opex continued upward. This was the first call with new CEO Kevin Hykes, but it was largely overshadowed by the soft quarter, Craig-Hallum notes. According to management, the weakness was due to employee turnover of the sales team. Though the exact turnover was not quantified, it was cited as material, and management listed several reasons for why it occurred. Specifically, management called out that the sales comp plan for 2024 fell short of what reps had been expecting and was further exacerbated by typical turnover seasonality in MedTech, the firm adds.