In a turbulent market environment, Nevro Corp (NYSE:NVRO) stock has recorded a new 52-week low, dipping to $4.35. The medical device company, known for its innovative spinal cord stimulation therapy, has faced significant headwinds over the past year, reflected in a stark 1-year change with a decline of -73.95%. This downturn has brought the company's valuation to a critical level, as investors and analysts reassess the firm's prospects amidst broader sectoral pressures and market dynamics. The current price level represents a critical juncture for Nevro Corp, as stakeholders consider the company's strategic direction and potential for recovery.
In other recent news, Nevro Corp has been under the analysts' lens following its recent third-quarter earnings report. The company's revenue for the quarter was reported at $96.9 million, surpassing consensus expectations. Piper Sandler, Baird, and Canaccord Genuity have all made adjustments to their outlooks on Nevro Corp. Piper Sandler cut its price target to $6 from $7, maintaining an underweight rating due to concerns about the company's growth trajectory. Baird increased its price target to $6, maintaining a neutral rating, citing potential margin improvements in 2025. Canaccord Genuity, on the other hand, cut its price target to $7 from $8, maintaining a hold rating, citing ongoing market challenges.
Nevro's adjusted EBITDA for the quarter was significantly better than expected, recording a loss of $1.8 million, a notable improvement from the consensus estimate of a $9.6 million loss. The company also maintained its full-year 2024 revenue guidance, which remains unchanged at $400 million to $405 million. Nevro improved its adjusted EBITDA outlook to a range of -$16 million to -$18 million, an enhancement from the previous range of -$18 million to -$20 million.
Despite these positive adjustments, Nevro reported a -7.5% decline in its U.S. SCS franchise and a continued downturn in U.S. trial procedures, which saw a year-over-year decrease of -15.2% in the third quarter. The company continues to target expansion in the underpenetrated painful diabetic neuropathy (PDN) market, leveraging promising clinical study results. Nevro has also introduced its AI-driven HFX iQ with HFX AdaptivAI technology and plans to grow its SI joint fusion business, with meaningful contributions expected starting in 2025. These are some of the recent developments with Nevro Corp.
InvestingPro Insights
Nevro Corp's recent stock performance aligns with several key insights from InvestingPro. The company's shares are indeed trading near their 52-week low, as highlighted by one of the InvestingPro Tips. This corroborates the article's mention of the stock hitting a new low of $4.35. Additionally, InvestingPro data shows a staggering 1-year price total return of -73.73%, closely matching the article's reported decline of -73.95%.
The company's financial health appears precarious, with InvestingPro Tips indicating that Nevro is "quickly burning through cash" and "not profitable over the last twelve months." This is further supported by the reported operating income of -$83.48 million for the last twelve months as of Q3 2024. These factors likely contribute to the stock's continued downward trajectory.
Despite these challenges, InvestingPro Tips suggest that Nevro is "trading at a low revenue valuation multiple" and has "liquid assets exceed[ing] short term obligations," which could provide some stability as the company navigates its current difficulties. For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could shed light on Nevro's potential for recovery or further decline.
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