The last year, and especially the last six months or so, hasn't been very friendly to the pure-plays in the spine space like K2M (KTWO) and NuVasive (NUVA), and though Globus (GMED)
has had no such problems. In the case of K2M, this company's focus on
complex and degenerative cases hasn't spared it from some of the same
overall pressures that have hit the sector, and the shares were down
about 15% from the time of my last article before a recent rally shrunk
that underperformance a bit.
Although K2M's recent
underperformance is a little concerning, the company still has a strong
line-up that should drive better results in 2018 and beyond. Competition
remains a risk, but K2M has brought innovation to a space that has
generally been overlooked and that has helped serve as a "force
multiplier" for the sales effort of this relatively small company. While
I wouldn't buy (or recommend) a stock on the basis of M&A
potential, K2M looks like an attractive digestible target, but the
shares have enough standalone upside to justify a closer look.
Read more here:
K2M Looking To Move Past A Disappointing 2017 With Innovation-Fueled Growth
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