Friday, December 17, 2010

NuVasive (NASDAQ:NUVA) Short-Term Catalysts Weak

Although longer term growth drivers for NuVasive (NASDAQ:NUVA) are looking pretty good, short term they'll continue to be under pressure.

Needham said, "Yesterday (Wednesday), Needham hosted investor meetings with NuVasive in the San Francisco area. We came away from the meetings more positive on NUVA’s long-term growth drivers, but remain cautious on the company’s near-term prospects. We lower our 4Q10 and 2011 revenues on lower U.S. lumbar spine revenues due to limited near-term revenue visibility. We maintain our 2011 revenue growth rate expectation of 10% and 2012 estimates. Notably, investor top concerns focused on spine market dynamics, revenue visibility, and composition of 2011 revenue guidance."

Needham & Company maintains a "Hold" rating on NuVasive, which closed Thursday at $23.31, up $0.18, or 0.78 percent.

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