Nevro downgraded to Underweight from Neutral at Piper Sandler

Piper Sandler analyst Adam Maeder downgraded Nevro to Underweight from Neutral with a price target of $38, down from $42. While the shares underperformed in 2022 and investor expectations have moved lower, "there are a handful of items that we find a bit concerning and ultimately seek further clarity on," Maeder tells investors in a research note. The analyst sees Street estimates as sitting a little too high for 2023, and thinks a downward revision is likely. There is also a lack of visibility surrounding broader spinal cord stimulation market growth, and the category will become more competitive over the next 12-24 months, says Maeder. As such, he sees Nevro as the most likely to underperform within his coverage universe.