NuVasive Boosted By Renewed Confidence, But Follow-Through Will Be Critical

The last couple of years have certainly highlighted that NuVasive (NUVA) has yet to outgrow its volatility, but the stronger than expected second quarter results were the sort of confidence-building results I thought these shares would need to get back some of their luster. Now the question is whether or not the company can leverage recent new product introductions to maintain that momentum and whether procedure volumes in the spine market at large can support a stronger growth outlook.

With the shares back into the high $60s, it’s tougher to make a call on NuVasive. While there are still opportunities to gain share in the spinal market, NuVasive doesn’t have the operating track record of a company like Stryker (SYK), and I certainly wouldn’t criticize investors who bought shares in the $40s thinking about cashing in and moving on. If NuVasive can deliver another quarter or two of better than expected growth, though, a fair value in the mid-$70s could very well come back into play.

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NuVasive Boosted By Renewed Confidence, But Follow-Through Will Be Critical