Nevro price target lowered to $6 from $7 at Piper Sandler

Piper Sandler analyst Adam Maeder lowered the firm’s price target on Nevro (NVRO) to $6 from $7 and keeps an Underweight rating on the shares. The firm notes Nevro announced Q3 results that topped consensus, with revenue of $96.9M coming in above Piper’s and the Street’s estimates of $92M and $93M, respectively. The company maintained its FY2024 revenue guidance from the previous quarter and improved its adjusted EBITDA outlook. While the Q3 report came in better than guidance and Street models, the firm estimates the U.S. SCS franchise still declined -7.5% with U.S. core SCS below that. Nevro also noted continued weakness in U.S. trial procedures. Altogether, Piper is pleased to see the improvement on adjusted EBITDA, but remains concerned about the company’s ability to drive growth going forward.