In a challenging year for Nevro Corp, the medical device company's stock has hit a 52-week low, dropping to $5.06. This significant downturn reflects a broader trend for the company, which has seen its stock value decrease by 57.09% over the past year. Investors have been closely monitoring Nevro's performance, as the company grapples with market dynamics and internal challenges that have contributed to this decline. The current price level marks a critical juncture for Nevro, as stakeholders consider the company's future prospects and strategic direction in an effort to recover lost ground.
In other recent news, Nevro Corp's second-quarter performance and revised full-year 2024 guidance prompted several financial firms to adjust their outlook. Nevro's Q2 revenue of $104.2 million missed estimates, leading Canaccord Genuity to lower the price target to $8.00 while maintaining a Hold rating. The company's adjusted EBITDA of $3.0 million, however, exceeded loss estimates. Piper Sandler, noting the company's lowered revenue forecast and increased competitive pressures in the Spinal Cord Stimulation market, also reduced its price target for Nevro to $7.00, maintaining an Underweight rating.
RBC Capital, responding to the company's sales shortfall and revised revenue forecast, cut its price target to $7.00 but maintained a Sector Perform rating. Nevro is expecting a year-over-year revenue decline of 5-6%, translating to revenues between $400 million and $405 million. JMP Securities downgraded Nevro's stock to Market Perform due to the company's sales shortfall and projected larger EBITDA loss.
JPMorgan (NYSE:JPM) downgraded Nevro from Neutral to Underweight, citing ongoing challenges including competition and a recent cut in its 2024 guidance. Despite these adjustments, Nevro Corp reported an 8% organic growth and a significant 73% year-over-year increase in positive free cash flow. The company is expecting gross revenue to be between $937 and $942 million for full-year 2024. These are recent developments in the company's financial dynamics.
InvestingPro Insights
As Nevro Corp faces a critical period, real-time data and insights from InvestingPro offer a nuanced view of the company's financial health and market performance. With a market capitalization of $319.17 million and a negative price-to-earnings (P/E) ratio of -4.09, the company's valuation metrics suggest investors are cautious about its near-term profitability prospects. The revenue figures show modest growth in the last twelve months as of Q2 2024, with a 1.59% increase, indicating some resilience in sales despite broader challenges.
One InvestingPro Tip notes that Nevro holds more cash than debt on its balance sheet, which could provide some financial flexibility in these challenging times. However, another tip reveals that analysts do not anticipate the company will be profitable this year, aligning with the negative P/E ratio observed. For investors considering the stock's potential, it's worth noting that Nevro is trading near its 52-week low and has not been profitable over the last twelve months. On a positive note, the company's liquid assets exceed short-term obligations, which may provide some reassurance regarding its ability to meet immediate financial needs.
For those interested in a deeper analysis, InvestingPro has additional tips available, offering a comprehensive look at Nevro's financial position and market outlook. With the next earnings date set for October 30, 2024, stakeholders will be keen to see how the company plans to address its challenges and capitalize on its strengths.
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