Nevro stock price target trimmed on sales figures beat By Investing.com

On Wednesday, Wells Fargo adjusted its stance on Nevro Corp (NYSE:NVRO), a medical device company, by lowering the price target from $14.00 to $13.00. The firm maintained its Equal Weight rating on the stock. This adjustment follows Nevro’s disclosure of its first-quarter sales figures, which surpassed Wall Street’s expectations.

Nevro reported quarterly sales of $101.9 million, marking a 5.6% year-over-year increase and exceeding the Street’s projection of $97.9 million. The company’s performance in the United States was particularly strong, with sales reaching $87 million, outpacing the anticipated $83.6 million. International sales also exceeded expectations, coming in at $14.9 million against the forecasted $14.3 million.

The company observed some revenue shifting from the second quarter into the first, which contributed to the reported figures. Despite this, U.S. trial procedures saw a 5.1% year-over-year decline, and the number of permanent implant procedures remained relatively unchanged from the previous year. Nevro attributed these trends to reduced physician implant days, as training for their new product, Vyrsa, took precedence.

Nevro’s HFX iQ, a spinal cord stimulation system, represented 58% of the total volume, which is an increase from 53% in the previous quarter. This product continues to be a significant driver of the company’s performance, aligning with expectations for growth in the peripheral diabetic neuropathy (PDN) market segment.

InvestingPro Insights

As Nevro Corp (NYSE:NVRO) navigates the medical device market, recent data from InvestingPro provides a snapshot of the company’s financial health and market performance. With a market capitalization of $422.94 million, Nevro’s price to book ratio stands at 1.44, suggesting that the stock is reasonably valued in relation to the company’s net assets. This is particularly relevant for investors weighing the company’s stock price against its tangible value.

Despite the positive sales report, Nevro’s price-to-earnings (P/E) ratio remains negative at -4.43, reflecting the market’s anticipation of future losses or a belief that the company is undervalued. This ties in with an InvestingPro Tip indicating analysts do not expect the company to be profitable this year. Moreover, the company’s revenue growth over the last twelve months was 4.63%, which, while modest, is a sign of progress in a…