Nevro price target lowered to $37 from $43 at Wells Fargo

Wells Fargo analyst Larry Biegelsen lowered the firm’s price target on Nevro to $37 from $43 and keeps an Equal Weight rating on the shares after meeting with management following the company’s Q4 pre-announcement. Key takeaways from his meetings include: the SCS market was likely flattish to down -2% in Q4, SCS market growth in 2023 could be low single digits, and based on his meeting with Saluda, its U.S. full market launch is now expected to happen in late 2023. Biegelsen also highlights that Nevro noted slightly more pricing pressure in Q4 than it expected. Based on typical seasonality, the analyst expects Q1 2023 revenue to be about $97M. Nevro does not anticipate gross margin crossing into the 70% territory at any point in 2023, and HFX iQ full launch could be in late Q1/early Q2, he adds.