Sunday, March 15, 2015

Seeking Alpha: Can NuVasive 2.0 Take The Shares To New Highs?

The market for implants and tools used in spinal surgery hasn't been immune to some of the challenges that have beset other large orthopedic markets, but NuVasive (NASDAQ:NUVA) has continued to reap the benefits from its leverage to faster-growing minimally invasive procedures. Up more than 25% from my last article, NuVasive has been not only outgrowing the spine market but also showing at least some of the long-awaited operating margin leverage that management had promised.

NuVasive hasn't always (or even often) looked cheap by the more conservative DCF valuation approach, but the shares could still trade higher if management continues to deliver margin improvement and above-average growth and the market rewards the shares with a valuation more in line with its revenue growth and margin potential. Although there are better bargains in small and mid-cap health care, NuVasive has a stronger market share position than most and a clearer runway to market share, revenue, profit, and cash flow growth.

Read more here:
Can NuVasive 2.0 Take The Shares To New Highs?

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