At Extreme Investor Network, we are always on the lookout for the latest investment opportunities that have the potential to yield great returns. Today, we’re diving into Goldman Sachs’ analysis of LivaNova stock and their optimistic outlook for its future.
Goldman Sachs analyst David Roman believes that a period of underperformance for LivaNova stock may be coming to an end, with the potential for shares to gain over 20%. Roman highlights the company’s consistent results and enhanced margin profile as key factors that could drive the stock higher in the coming months.
LivaNova is a medical device company that focuses on producing devices used in cardiac surgery and neuromodulation, a treatment method for conditions like depression, obsessive-compulsive disorder, and chronic pain. Despite a modest 3% increase in share price in 2024, LivaNova has significantly underperformed the S&P 500’s 20% gain.
Roman attributes LivaNova’s underperformance to strategic shifts in the business and pipeline setbacks that impacted the company’s earnings. However, he sees potential for the stock to rebound in the near future, driven by growth catalysts such as an upgrade cycle for cardiopulmonary devices, which account for a majority of the company’s sales.
At Extreme Investor Network, we see the potential for LivaNova stock to benefit from positive earnings revisions and continued business momentum. With our unique insights and analysis, we believe that the stock’s price-to-earnings ratio could see a significant re-rating over the next 12 months.
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