Nevro Corp (NVRO) PT Lowered to $11 at Canaccord Genuity

Canaccord Genuity analyst William Plovanic lowered the price target on Nevro Corp (NYSE: NVRO) to $11.00 (from $17.00) while maintaining a Hold rating.

The analyst commented: "NVRO reported Q1/24 results ahead of CG and Street estimates. Q1/24 revenue of $101.9M beat our $97.2M and the Street’s $97.9M. Q1’s top line was driven by HFX iQ ASP increases and long-time Nevro patients replacing their first implant with a newer system. The company reiterated its FY24 revenue guidance range of $435M-$445M, in line with the pre-print estimates. That said, the company raised its adjusted EBITDA guidance ahead of estimates, now calling for $5M loss to $2M gain with additional cost savings implemented in April 2024. Q2 guidance came in lower than estimates, but management believes that Q1 outperformance offsets Q2 softness. Vyrsa is expected to be immaterial to FY24 revenue, but the company is ramping up on rep and physician training to integrate its SI joint products and drive top-line growth. After reviewing its corporate strategy, management reminded investors that its focus is 1) executing commercially by leveraging its sales force to drive adoption across its products, 2) penetrating its markets deeper through new FDA indications and industry-leading clinical data, and 3) strengthening its profitability profile. The company has paused its PDN-Sensory study, as it believes it can achieve powered, guideline-altering results with its current enrollment, but did not provide timing for data release. We reaffirm our HOLD rating and are adjusting our PT to $11 from $17."

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