Analyst Michael Matson from Needham maintained a Buy rating on LivaNova (LIVN – Research Report) and decreased the price target to $64.00 from $75.00.
Michael Matson has given his Buy rating due to a combination of factors that suggest potential for future growth despite recent challenges. The company’s revenue in the fourth quarter of 2024 fell short of expectations, but earnings per share exceeded consensus estimates. Although there was a slowdown in organic revenue growth, LivaNova’s cardiopulmonary segment outperformed expectations, indicating strength in certain areas of the business.
Furthermore, the company’s gross and operating margins have improved year-over-year, reflecting operational efficiency. LivaNova is also poised to launch its aura6000 sleep apnea device pending FDA approval, which could drive future growth. Despite the recent sell-off, Matson believes it is an overreaction, and while the price target has been adjusted downward, the overall outlook remains positive, justifying the Buy rating.