On September 19, 2023, Stifel analyst Mathew Blackman made a noteworthy upgrade to Globus Medical, Inc. (NYSE:GMED), shifting its rating from Hold to Buy. Blackman also adjusted the price target, lowering it to $61 from $65. According to Blackman, GMED stands out as the leading Spine company in the public market, boasting over a decade of successful clinical and commercial execution. This track record has propelled the company to achieve consistent growth that surpasses the market average, along with impressive EBITDA margins exceeding 30%.
Despite the recent NUVA transaction, which has caused some pessimism and resulted in a discounted valuation, Blackman believes that GMED deserves more recognition than it is currently receiving. Looking ahead, the analyst predicts that the combined companies have the potential to sustain even higher growth rates than what is currently projected. Through his modeling and valuation analysis, Blackman concludes that GMED shares have already factored in most of the integration risks at their current levels.
In terms of revenue estimates, Blackman has made significant adjustments. For FY23, the analyst raised the revenue estimate from $1.13 billion to $2.36 billion, reflecting a substantial increase. Additionally, for FY24, Blackman increased the revenue estimate to $2.44 billion from $1.24 billion, indicating continued growth expectations.
As of the last check on Tuesday, GMED shares have experienced a 3.03% increase, trading at $53.17. This positive market response suggests that investors are responding favorably to Blackman’s upgraded rating and revised revenue estimates.
Globus Medical, Inc.
GMED
Buy
Updated on: 21/09/2023
Financial Health
Healthy
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
GMED Stock Shows Positive Performance and Promising Growth in Health Technology Sector
On September 19, 2023, GMED stock had a positive performance, opening at $52.62 and reaching a day’s range of $52.38 to $53.30. The stock closed at $51.60 the previous day, indicating a slight increase in value. The trading volume for the day was 2,605,525 shares, higher than the average volume of 1,481,485 shares over the past three months. The market capitalization of GMED stands at $7.0 billion.
GMED, a company in the health technology sector and medical specialties industry, has shown promising growth in recent years. Its earnings growth rate for the last year was +27.81%, while this year’s earnings growth stands at +12.70%. The company’s projected earnings growth for the next five years is +12.00%. These figures indicate a positive trajectory for GMED’s financial performance.
Furthermore, GMED experienced a revenue growth rate of +6.76% in the previous year, demonstrating its ability to generate consistent revenue. The company’s price-to-earnings (P/E) ratio is 26.6, indicating that investors are willing to pay a premium for GMED’s earnings. The price-to-sales ratio is 7.45, while the price-to-book ratio is 2.72, suggesting that GMED’s stock is valued fairly.
In terms of profitability, GMED reported an annual profit of $190.2 million last year, with a net profit margin of 18.59%. These figures indicate that GMED is effectively managing its costs and generating healthy profits.
Although GMED had a positive performance on September 19, 2023, some other stocks in the health technology sector did not fare as well. MSAMSA Safety Inc experienced a decrease of -2.86, resulting in a -1.67% change, while INSP Inspire Medical Systems saw a decline of -6.50, leading to a -3.10% change.
Looking ahead, GMED’s next reporting date is set for November 8, 2023. Analysts forecast an earnings per share of $0.57 for the current quarter. In the previous year, GMED recorded an annual revenue of $1.0 billion, indicating its strong performance in generating sales.
In conclusion, GMED stock had a positive performance on September 19, 2023, with an increase in value compared to the previous day’s close. The company has shown impressive earnings and revenue growth in recent years, as well as strong profitability. With its next reporting date approaching, investors will be keen to see if GMED can continue its upward trajectory.
Globus Medical Inc (GMED) Stock: Analysts Forecast 22.11% Increase in Next 12 Months
On September 19, 2023, Globus Medical Inc (GMED) stock had a median target price of $65.00, according to 11 analysts offering 12-month price forecasts. The high estimate was $77.00, while the low estimate was $58.00. This median estimate represented a +22.11% increase from the last price of $53.23.
The current consensus among 15 polled investment analysts is to hold stock in Globus Medical Inc. This rating has remained steady since September.
In terms of financial performance, Globus Medical Inc reported earnings per share of $0.57 for the current quarter. The company’s sales for the same period were $271.0 million. The reporting date for these figures is November 8.
Based on the analysts’ forecasts, it appears that there is optimism surrounding GMED stock. The median target price of $65.00 suggests that the analysts expect the stock to increase by 22.11% in the next 12 months.
However, it is important to note that these forecasts are based on the analysts’ opinions and projections, and there is no guarantee that the stock will actually reach these target prices. Investors should always conduct thorough research and consider multiple factors before making any investment decisions.
Overall, the current consensus among investment analysts is to hold stock in Globus Medical Inc. As the reporting date for the company’s financial results approaches, investors may gain more insights into the company’s performance and make more informed decisions regarding GMED stock.
Discussion about this post