Globus Medical Buy

GMED : NYSE : US$24.15 
BUY  Target: US$28.00 

COMPANY DESCRIPTION:

Globus is a medical device company focused exclusively on the design, development, and commercialization of products that promote healing in patients with spine disorders.
All amounts in US$ unless otherwise noted

Life Sciences — Biomedical Devices and Services Q4/13 SOLID AS EXPECTED; NEW PRODUCTS AND DISTRIBUTION SET TO DRIVE 2014 AND BEYOND; MAINTAIN BUY AND $28 TARGET
Investment recommendation

We maintain our BUY rating on Globus following a solid Q4/13. Globus’s ability to continue to take share and generate strong operating margins reinforces our thesis that the company offers investors multiple opportunities to create value. Our thesis remains intact and we are buyers of Globus into 2014 as the company looks well positioned for growth via continuous new product flow, significant distribution expansion in 2013, and best in-class financial discipline.
Investment highlights  Q4/13 revenue of $115.2M was solid and in line with the preliminary numbers. Pro forma EPS of $0.25 came in well above our and consensus estimates of $0.22 on higher-than-expected operating leverage.
 Sixteen new product launches in 2013 and significant new rep additions position Globus for accelerating growth into 2014.
 Management reiterated 2014 guidance for revenues in the range of $480M-$486M, and EPS of $0.90-$0.92
Valuation We are maintaining our $28.00 price target based on a 26.8x PE multiple applied to our 2015 EPS estimate of $1.04.

Globus Medical

GMED

 NYSE : US$16.75 BUY 
Target: US$24.00

COMPANY DESCRIPTION:
Globus is a medical device company focused exclusively on the design, development, and commercialization of products that
promote healing in patients with spine disorders.
All amounts in US$ unless otherwise noted

 

Investment recommendation
We maintain our BUY rating on shares of Globus following a mixed Q2/13. Best-in-class top-line growth (albeit a bit light vs expectations) combined with strong operating margins reinforce our thesis of Globus offering investors multiple opportunities to create value.

Our thesis remains intact and we are buyers of Globus on any weakness as the company is well positioned for growth in 2013 and beyond via continuous new product flow, distribution expansion and best-in-class financial discipline.
Investment highlights
 Q1/13 results of $107.0M/$0.21 were mixed relative to our and consensus estimates of $107.6M/$0.20 and $107.5M/$0.20.
 Breakdown of Y/Y revenue growth in the Q2/13: Innovative fusion +3%, Disruptive technologies +26% Y/Y, US grew +11%, and International +20%. Innovative fusion drove upside vs our estimate.
 New rep adds in 1H/13 in-line with all of 2012 with more to come.
 Management reiterated 2013 guidance for revenues of $432M and EPS of $0.81.
Valuation
We are raising our price target to $24.00 from $22.00 based on a 26.4x PE multiple applied to our 2014 EPS estimate of $0.92.

Globus Medical Q4/12 SOLID AS EXPECTED; 2013 GUIDANCE IN LINE FOR YEAR

GMED : NYSE : US$13.82
BUY 
Target: US$22.00

COMPANY DESCRIPTION:
Globus is a medical device company focused exclusively on the design, development, and commercialization of products that promote healing in patients with spine disorders. All amounts in US Dollars.

Investment recommendation


We reiterate our BUY rating on Globus following a solid Q4/12. Best-inclass top-line growth combined with strong operating margins reinforce
our thesis of Globus offering investors multiple opportunities to create value. Net, net we are encouraged by Q4/12 results that slightly
outperformed our and consensus expectations. Our thesis remains intact given continuous new product flow combined with distribution
expansion and best in-class financial discipline that positions the company well for both top- and bottom-line growth in 2013 and beyond.
Investment highlights
 Q4/12 results of $100.5M/$0.22 were above our and consensus estimates for $99.2M/$0.18 and $99.1M/$0.19.
 Breakdown of Y/Y revenue growth in the Q4/12: Innovative fusion +3%, Disruptive technologies +35% Y/Y; US grew +13%, and International +36%. Disruptive tech and US drove results.
 Favorable guidance for double-digit revenue growth, ~13%, and adjusted EBITDA of 34%-35% (inclusive of ~ 180bps impact from the medical device tax) vs our expectation for 12% and 33.7%.
Valuation
We are maintaining our $22.00 price target based on a 24.0x PE multiple applied to our 2014 EPS estimate of $0.92

Follow

Get every new post delivered to your Inbox.

Join 2,122 other followers