Needham downgrades Globus on ‘meaningful’ integration risks

Needham analyst David Saxon downgraded Globus Medical (GMED) to Hold from Buy without a price target after the company entered into a merger agreement with NuVasive (NUVA). While Globus expects the deal to be greater than 20% accretive in the first year, there are "meaningful integration risks, including revenue dis-synergies and culture clash," the analyst tells investors in a research note. As such, the firm does not expect Globus shares to return to their historical multiple range until consistent execution is demonstrated, potentially over a multi-year period.