On Friday, Canaccord Genuity maintained its Buy rating on Globus Medical (NYSE:GMED) shares and increased the price target to $101 from the previous $92.
This adjustment follows the company's announcement of preliminary results for the fourth quarter of 2024, which surpassed both Canaccord Genuity's and Street estimates. The analysts at Canaccord Genuity updated their model in response to these results and the 2025 revenue guidance provided by Globus Medical (TASE:PMCN).
The new revenue guidance suggests a 6.2% growth, which the analyst considers conservative, a characteristic approach for Globus Medical. In light of the recent preannouncement and the company's outlook, the analyst has revised their financial model, leading to the increased price target.
The valuation for the new $101 price target is based on a 5.0x 2025 estimated EV/Sales multiple. This multiple represents a 10% premium to the average of the mid-cap MedTech comparison group, excluding the highest and lowest. The price target is applied to the firm's 2026 sales estimate of $2,838.7 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.