Nevro's stock tumbles toward 3-year low after downbeat outlook prompts J.P. Morgan downgrade
Shares of Nevro Corp. plunged 15% toward a 3-year low in morning trade Tuesday, after the maker of the Senza spinal cord stimulation system for the treatment of chronic pain reported a wider-than-expected third-quarter loss, according to FactSet, although revenue topped expectations. The company also said on the post-earnings conference call late Monday that unit sales data suggests U.S. growth rates have "slowed significantly" from 20% in 2017 to 5% to 8% in the third quarter, according to a transcript provided by FactSet. That prompted J.P. Morgan analyst Robert Marcus to downgraded the stock to neutral from overweight and slash his price target to $45 from $77, citing the "notable stepdown" in growth expectations. Among other analyst moves, Leerink's Danielle Antalffy cut her price target to $65 from $78 and Canaccord Genuity's Jason Mills dropped his target to $63 from $80. The stock was on track for the lowest close since Oct. 23, 2015. It has plummeted 38% over the past three months, while the S&P 500 has slipped 3.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.