Needham Reiterates Hold Rating on Globus Medical (GMED)

Needham analyst Mike Matson reiterated a Hold rating on Globus Medical (NYSE: GMED).

The analyst comments "This morning, GMED announced an agreement to acquire Nevro (NVRO, Not Rated) for $5.85 per share in cash, or an enterprise value of ~$195M. NVRO provides the HFX spinal cord stimulation (SCS) system for chronic back or leg pain, painful diabetic neuropathy, and non-surgical back pain as well as the Nevro1 sacroiliac joint fusion (SIJF) system. The deal is expected to close in late-2Q25 and to be ~6% dilutive (or $0.20) to GMED's 2025 EPS at the mid-point however, management believes NVRO can become accretive in the second year post-close. While we had been getting more positive on GMED given their seemingly flawless integration of NUVA, we believe the path to accretion while sustaining NVRO's revenue growth might be more challenging. Given this, we maintain our Hold rating."

For an analyst ratings summary and ratings history on Globus Medical click here. For more ratings news on Globus Medical click here.

Shares of Globus Medical closed at $92.40 yesterday.

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