Nevro initiated with a Neutral rating, $26 target at Baird

As previously reported, Baird analyst David Rescott initiated coverage of Nevro with a Neutral rating and $26 price target. Nevro, a player in the spinal cord stimulation, or SCS, market for treatment of chronic pain, is now entering the new and sizable U.S. painful diabetic neuropathy, or PDN, market. However, given the firm’s expectation for below-market growth in a lagging U.S. SCS market, it sees a high-single digit revenue growth profile and “downward bias” to FY23/FY24 estimates as a new management team takes over, the analyst tells investors.