Nevro downgraded to Hold at Canaccord on increased competition

As previously reported, Canaccord downgraded Nevro to Hold from Buy with a price target of $23, down from $30, in conjunction with the firm’s 2024 outlook note on the Biomedical Devices and Services sector. The firm, which notes it had upgraded Nevro in its 2023 kick-off note, says “frankly, we were wrong” as the core SCS market did not recover as expected and PDN continued to ramp, but just not fast enough to offset the weak SCS market. Its recent checks with key opinion leader physicians indicated that the two new private companies entering the U.S. SCS market, Biotronik and Saluda, are likely to take “a disproportionate share” from current Nevro users, the analyst tells investors.