Canaccord reiterates Buy on Globus, says warning letter ‘growing pains’

Canaccord reiterates a Buy rating on Globus Medical with a $79 price target after speaking with management about the FDA warning letter. There is no product hold as the issue is administrative, and the FDA is also not required to respond to Globus about the company’s submission, the analyst tells investors in a research note. The firms says that even though navigation and robotics have improved accuracy versus freehand navigation, accuracy will never be 100% and thus there will be adverse events that occur with device usage. With Globus already having submitted its response providing necessary further info to the FDA, Canaccord views the issue as “growing pains with GMED learning to navigate the regulatory environment as a larger entity.”