September 19, 2017 / 6:00 PM / a year ago

BUZZ-NuVasive tumbles after GlassHouse Research note

** NuVasive shares down 7.4 pct to $53.50. Stock at 16-mth low on triple the 30-day avg volume

** GlassHouse Research initiated coverage with a $24.18 price target, citing recent departures of NuVasive's President/COO and CFO leaving "abruptly at a time where this is a profusion of accounting red flags" bit.ly/2xeRaoh

** Accounting issues at NuVasive are worse than those at Electronics for Imaging, according to GlassHouse, which the firm had previously cited for accounting issues

** GlassHouse said it believes NuVasive’s core business is suffering greatly and is being masked by recent acquisitions; as organic revenue starts to trend negative, its growth by acquisition strategy is at risk

** NuVasive has “borrowed from the Valeant playbook,” said in the note, with an “acquire at all cost” model that has enabled the company to inflate its true earnings

** Departures of CFO Quentin Blackford and COO Jason Hannon within the last three months concerning, given accounting irregularities, according to GlassHouse

** StarMine intrinsic valuation of NuVasive is $35.43, nearly 39 pct below Monday closing price of $57.80

** According to Thomson Reuters data, of 19 analysts covering the stock, 14 maintain a “buy” or higher rating, with 4 “hold” and 1 “sell”; median PT $81

** Up to Mon’s close, NUVA shares had lost a qtr of their value since Jul 27 after co reported Q2 results and announced organizational changes

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below