Benzinga | Dec 13, 2021 11:09AM EST

Why Did BofA Securities Give Globus Medical A Double Upgrade?

Enabling tech is likely to continue driving Globus Medical Inc's (NYSE:GMED) market share gains in 2022, according to BofA Securities.

The Globus Medical Analyst: Craig Bijou upgraded the rating for Globus Medical from Underperform to Buy, while raising the price target from $55 to $80.

The Globus Medical Thesis: The pullback in the stock over the past month, following reports of the acquisition of NuVasive, Inc. (NASDAQ:NUVA) and on COVID-19 omicron variant concerns, "provides a particularly attractive entry point," Bijou said in the upgrade note.

The NuVasive acquisition is unlikely, the analyst mentioned. He added, "as we wrote at the time. COVID remains a risk to volume, but believe GMED should outperform peers during any flare-ups as it has over the last two years."

"We see upside potential to the 10% consensus top-line growth next year as the growing robot installed base, increased utilization and new enabling tech products should further drive implant pull through and disposable/service revenue," Bijou further wrote.

GMED Price Action: Shares of Globus Medical had risen by 2.37% to $69.56 at the time of publication Monday morning.

Photo by National Cancer Institute on Unsplash