Wells Fargo downgrades Nevro to Equal Weight, lowers price target to $43

As previously reported, Wells Fargo analyst Larry Biegelsen downgraded Nevro (NVRO) to Equal Weight from Overweight with a price target of $43, down from $66, as he believes 2023 Street estimates are too high. The analyst expects that the underlying SCS market will remain soft as pain-related procedures slowly recover post-pandemic. Biegelsen sees several headwinds to Nevro’s growth, namely, new competition, a recent JAMA study that could lead to payer pushback on SCS devices, and UnitedHealthcare’s (UNH) non-coverage decision for nonsurgical refractory back pain.