Canaccord Adams Maintains a ‘Buy’ on NuVasive (NUVA); Q4/09 Results Bring More Questions Than Answers; Guidance Complicated

Canaccord Adams maintains a ‘Buy’ on NuVasive, Inc. (Nasdaq: NUVA), lowers PT from $56.25 to $41.

Canaccord analyst says, “The full results for 2009 were solid, and in line with its preannouncement. However, as management provides fewer metrics to measure the business’ progress and guides no sequential growth in the Q1/10, we remain concerned over the growth trajectory. Furthermore, guidance was complicated, and therefore confusing as taxes must now be calculated into earnings estimates as will the impact of the company’s $230M outstanding convertible bond offering. While there was no impact on the pro forma operating margin, EPS estimates for 2010 and 2011 will be reduced as a result of the accounting changes…Our price target is based on a 38.2x P/E multiple applied to our 2011 pro forma EPS estimate of $1.07.”

To see all the upgrades/downgrades on shares of NUVA, visit our Analyst Ratings page.

NuVasive, Inc. (NuVasive) is a medical device company focused on the design, development and marketing of products for the surgical treatment of spine disorders.