On Nov 07, major Wall Street analysts update their ratings for $Globus Medical (GMED.US)$, with price targets ranging from $85 to $100.
Barclays analyst Matt Miksic maintains with a buy rating, and maintains the target price at $100.
Wells Fargo analyst Vik Chopra maintains with a buy rating, and maintains the target price at $88.
Needham analyst David Saxon maintains with a hold rating.
Stifel analyst Mathew Blackman maintains with a buy rating, and adjusts the target price from $80 to $92.
Piper Sandler analyst Matthew O'Brien maintains with a buy rating, and adjusts the target price from $80 to $100.
Furthermore, according to the comprehensive report, the opinions of $Globus Medical (GMED.US)$'s main analysts recently are as follows:
Globus Medical is poised to resume mid-to-high single-digit sales growth and achieve mid-30's EBITDA margins. The company's earnings outperformance is seen as 'impressive,' driven by robust sales and increasing cost synergies.
Globus Medical has exceeded expectations by continuing to deliver improved financial results, surpassing earlier projections. This success is partly due to the more efficient than anticipated integration of NuVasive, and as a result, there is a belief that better integration execution and enhanced profitability justify a less discounted multiple. Nonetheless, there is a view that realizing cross-selling synergies may prove challenging, particularly in the face of new competitors in the spine robot market entering this quarter, which could pose a challenge in meeting the market's anticipated 7% growth.
Q3 served as a significant confirmation of the thesis that the business has stronger foundations today than most anticipated. It is believed that current estimates may be too conservative and there is potential for a 1-2 turn increase in the multiple.
The company reported strong Q3 results, with sales and EPS exceeding expectations by 3% and 27%, respectively. This marks the fourth consecutive quarter of positive performance following the acquisition of Nuvasive, and due to management's exceptional execution, the company has achieved what is considered the most successful spine merger in the industry.
Globus Medical is challenging the commonly held beliefs about the inefficacy of spine mergers through its recent performance. The company's strict financial discipline and operational execution are contributing to a momentum that is expected to generate substantial free cash flow conversion, which could potentially lead to significant share repurchase activities.
Here are the latest investment ratings and price targets for $Globus Medical (GMED.US)$ from 6 analysts:
Note:
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