Matthew Colombo
Nevro Corp. Shares (New York Stock Exchange: NVRO) fell sharply on Wednesday after the MedTech company cut its full-year outlook with its second-quarter 2024 financial statements, prompting rating downgrades from JP Morgan and JMP Securities.
Nevro (NVRO), which focuses on marketing spinal cord products Spinal cord stimulation (SCS) platforms for pain reduction reported $104.2 million in revenue with its Quarterly results on Tuesday.
While the company's second-quarter results missed expectations, “what was more disappointing for us” was NVRO's decision to lower its revenue outlook, wrote JP Morgan analyst Robbie Marcus, downgrading the stock to Underweight from Neutral.
“While management is focused on bolstering growth through portfolio moves, we believe the issues are likely more structural and lack clarity on the company's growth trajectory,” Marcus added after JP Morgan withdrew its price target on NVRO.
Meanwhile, JMP Securities was more constructive and downgraded Nevro (NVRO) to a neutral equivalent rating of Market Perform from Market Outperform.
Even with a cut to the company’s 2025 sales guidance, NVRO is currently trading at an EV/revenue multiple of less than 1x, analyst David Turkaly wrote. He added that “while this is low on a comparative basis, the near-term growth and profitability prospects lead us to view the stock as fairly valued.”
