Evaluating Nevro: Insights From 8 Financial Analysts

In the latest quarter, 8 analysts provided ratings for Nevro NVRO, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $7.96, a high estimate of $10.00, and a low estimate of $5.50. Experiencing a 36.01% decline, the current average is now lower than the previous average price target of $12.44.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Nevro is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Nevro. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Nevro compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Nevro's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Nevro's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Delving into Nevro's Background

Nevro Corp is a medical device company. Its key product is the HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS system, an evidence-based neuromodulation system for the treatment of chronic pain. Senza generates electrical impulses to relieve pain. The system is implanted by physicians and controlled by patients. It consists of leads, a trial stimulator, an implantable pulse generator, surgical tools, a clinician laptop programmer, a patient remote control, and a mobile charger. The company generates the majority of its revenue in the United States.

Understanding the Numbers: Nevro's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Nevro showcased positive performance, achieving a revenue growth rate of 5.78% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -24.94%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Nevro's ROE excels beyond industry benchmarks, reaching -8.89%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -4.13%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.78, Nevro adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.