Goldman Sachs says a period of underperformance for LivaNova stock could be ending and see shares gain more than 20%. “As the business produces consistent results and the margin profile is enhanced, we think this period of underperformance fades into the rear view mirror,” analyst David Roman wrote on Friday. Roman initiated coverage of the medical device stock with a buy rating and a $65 per share price target. The analyst’s forecast implies 22% upside from Thursday’s $53.21 close. LivaNova is primarily focused on producing devices used for cardiac surgery and neuromodulation, the ladder of which being a method of treating depression, obsessive compulsive disorder and chronic pain. Shares have advanced roughly 3% in 2024, significantly underperforming the S & P 500’s nearly 20% gain. Roman ties the underperformance to “strategic shifts in the business and pipeline setbacks” for much of the year which also pressured LivaNova’s earnings. LIVN YTD mountain LivaNova stock. The analyst forecasts that shares could benefit from revisions to the upside in the near-term, and cited growth catalysts including an upgrade cycle tied to devices for cardiopulmonary treatment, which makes of 52% of the company’s sales. “Positive earnings revisions and continued business momentum represent the core of our thesis and our view that the stock’s P/E can re-rate higher over the next 12-months,” Roman said.
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