Adam Goulet
Citi has upgraded Nevro (New York Stock Exchange: NFPRO) to neutral, citing the recent sell-off in the stock following the company’s revised guidance.
The investment bank noted that Nevero’s shares have fallen about 74% since the beginning of the year, adding that it believes “there is little near-term optimism in the stock.” It is likely that the administration was trying to clarify matters with the revised guidance.
Citi said that while it is encouraged that the company is “more urgently” exploring strategic options, it does not assume that the company will be merged or acquired.
“While Citi believes the numbers are sufficiently specific for 2024E, uncertainty remains high, and it awaits further clarity on the underlying growth of the SCS market in the US, competition, and Vyrsa adoption before becoming more constructive on the name,” she added.