Piper upgrades Nuvectra to OW; PT to $16
Piper Jaffray upgraded Nuvectra (NASDAQ:NVTR) to “overweight” from “neutral” and raised its price target to $16 from $12 after the company reported fourth quarter results. The stock closed at $11.69 on March 15.
The company is focused on neurostimulation, providing therapy for spinal cord (SCS), sacral nerve (SNS) and deep brain stimulation.
“Following the company’s Q4 results, we reflected on the opportunities ahead for Nuvectra and believe the company is entering 2018 with strong momentum in the SCS marketplace, with Algovita and pending approvals for MRI indications, as well as a restored balance sheet following a successful follow-on offering in early February,” writes analyst Matt O’Brien.
In addition, he said the company’s foray into the $600-million sacral neuromodulation market should provide a “meaningful catalyst, in our opinion, for the stock assuming the product is commercialized later this year.”
Mr. O’Brien also raised his 2019 sales estimates by $12-million to $76.1-million, with the expectation that Virtis SNS will provide meaningful contributions from a modest take in share.