In a stark reflection of investor sentiment, Nevro Corp (NYSE:NVRO) stock has plummeted to a 52-week low, reaching a price level of just $3.95. According to InvestingPro data, while the company maintains a healthy current ratio of 5.02 and operates with moderate debt, five analysts have recently revised their earnings expectations downward. This significant downturn marks a precipitous decline for the medical device company, which has seen its stock value erode by an alarming -82.1% over the past year. The steep drop underscores the challenges Nevro has faced in the market, as it struggles to regain its footing amidst competitive pressures and investor skepticism. The 52-week low serves as a critical juncture for the company, as it seeks to implement strategies to stabilize its stock performance and reassure its stakeholders. Despite maintaining a gross profit margin of 68%, InvestingPro analysis indicates the company is quickly burning through cash, with eight additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Nevro Corp has experienced significant developments in its financial performance and strategic direction. The company's third-quarter results revealed a decrease in worldwide revenue by 6.7% to $96.9 million. However, the adjusted EBITDA loss was notably better than anticipated, reporting a loss of $1.8 million due to effective cost-cutting measures. Despite these changes, Nevro has maintained its revenue guidance for the full year 2024.
Several analyst firms have adjusted their outlook on Nevro. Morgan Stanley (NYSE:MS) downgraded the stock and reduced its price target to $4.00, citing challenges within Nevro's Spinal Cord Stimulation business. Similarly, Piper Sandler reduced the price target to $6, while retaining an underweight rating. Baird, however, increased Nevro's price target to $6, maintaining a neutral rating due to potential margin improvements in 2025. Canaccord Genuity reduced Nevro's price target to $7 from $8, maintaining a hold rating, following the company's Q3 earnings report and ongoing market challenges.
Nevro is focusing on artificial intelligence innovations, having received FDA approval for its HFX iQ with HFX AdaptivAI technology. The company has also recognized the need for increased direct-to-consumer spending, following a 15.2% drop in US trial procedures during Q3. Furthermore, Nevro continues to target expansion in the underpenetrated painful diabetic neuropathy (PDN) market, leveraging promising clinical study results. These are some of the recent developments with Nevro Corp.
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