Nevro Analysts Show Mixed Ratings Amid Revenue Decline

Nevro's stock performance appears uncertain as analysts provide diverse ratings. Recently, the company's revenue has dropped by approximately -6.69%, raising concerns among investors. Analysts show caution with lowered price targets, signifying potential challenges ahead.

Date: 07-02-2025

AI Rating: 4

**Earnings and Financial Performance Overview**: The report presents critical insights into Nevro's current financial standing based on recent analyst evaluations.

Nevro's financials indicate major challenges:

Negative Revenue Trend: The company experienced a revenue decline of approximately -6.69% over the last three months. This drop in revenue growth suggests challenges in maintaining top-line performance compared to peers in the health care sector.

**Analyst Sentiment**: Analysts have expressed a cautionary stance, as indicated by the ratings. Over the past 30 days, 9 analysts remained indifferent (neutral), with 2 slightly bearish perspectives. This lack of bullish ratings underscores a generally negative sentiment toward Nevro's stock performance. Combined with the recent average price target drop from $6.70 to $5.32, this signals concerns regarding future growth potential.

In-depth insights from key analysts indicate declining price targets:

Adam Maeder (Piper Sandler) lowered the price target from $6.00 to $5.85, reflecting a neutral stance.
Richard Newitter (Truist Securities) dropped from $7.00 to $4.70, indicating a more cautious hold.
Cecilia Furlong (Morgan Stanley) further suggested an even lower $4.00 target from $9.00, showing significant pessimism.

**Profitability Indicators**: The company reports a net margin of -15.83%, which highlights challenges in cost management and profitability, despite it exceeding industry standards.

**Return on Equity (ROE)**: Nevro showcases an ROE of -5.6%, suggesting effective capital use yet still indicates financial issues impacting overall performance.

Nevro's market capitalization being below the industry average also suggests investor caution about its smaller scale relative to peers.

Given these factors, investors may need to reassess their positions on Nevro, focusing on the potential impacts of analyst sentiment and revenue performance on stock prices.

Stocks: NVRO