NVRO - Nevro gains as Oppenheimer upgrades citing balanced risk reward

2023-05-15 12:38:01 ET

Nevro Corp. ( NYSE: NVRO ) traded higher on Monday after Oppenheimer upgraded the medical device company to Outperform from Perform, citing a balanced risk-reward setup following a sharp selloff in the stock.

Nevro ( NVRO ) of Redwood City, California, has lost over a third of its value over the past 12 months underperforming the broader market, as indicated in this graph.

“Our ratings change is more tactical in nature with risk-reward being somewhat balanced at these stock levels,” the analysts led by Suraj Kalia wrote on NVRO, with a new price target of $40.

Nevro ( NVRO ) trades at 2x on forward sales, implying a discount to the MedTech space at ~4.0x, the analysts argued, attributing the difference to the tempered recovery in the company’s organic spinal cord stimulation (SCS) business.

However, Oppenheimer notes that positive changes expected from Nevro’s ( NVRO ) new CEO and future product iterations/ introductions will be among potential rewards for investors.

“We believe that the new CEO helps to stabilize the ship, and new product iterations/introductions provide call options,” the team added.

More about Nevro

• Nevro beats Street forecasts for Q1 2023
• Nevro: Potentially Better Than Traditional SCS Treatment For Pain And Undervalued

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