LivaNova initiated with a Neutral at Baird amid recent clinical setbacks

As previously reported, Baird analyst David Rescott initiated coverage of LivaNova with a Neutral rating and $56 price target. While LivaNova offers a durable mid-single digit top-line growth profile and is “one of the few profitable SMID cap MedTech players” with accelerating adjusted EPS growth, the firm is given pause due to recent clinical setbacks, ongoing management change, and balance sheet constraints it sees creating an overhang and limiting upside, the analyst tells investors.