Globus Medical, Inc. (GMED) Reports Revenue Well Above Consensus, Brean Capital Note; PT to $33

Brean Capital reiterates their Buy rating on Globus Medical, Inc. (NYSE: GMED) and raised the target price to $33 (from $30) after GMED posted revenues well above consensus. GMED's 1Q15 report showed and increase of 15.2% in revenues to $131.6 million. Despite lower margins, new products and biologic sales from the acquisition of TTOT drove revenue. this is a great rapid recovery from the 2Q14 loss of a gulf distributor.

Brean Capital analyst Jason Wittes says that, "GMED expects the momentum to continue, but is only increasing revenue guidance to $514 million from $510 million and EPS to $1.02 from $1.01—which looks even more conservative than before. As such, we are raising our estimates for the year to $523.4 million from $513.1 million and our EPS to $1.05 from $1.01 —this does not assume an R&D tax credit, which would add another $0.03-$0.04. We reiterate our Buy rating and are raising our target price to $33 from $30."

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 $23.51 yesterday.

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