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Fly News Breaks for February 11, 2019
WMGI, SNN, NUVA
Feb 11, 2019 | 07:16 EDT
Cantor Fitzgerald analyst Craig Bijou thinks a Smith & Nephew (SNN) acquisition of NuVasive (NUVA) is unlikely as he sees more attractive acquisition targets that would better align with the company's goals. Specifically, there are better potential acquisition targets in end markets adjacent to Smith & Nephew with faster growth that would better leverage the company's existing businesses, Bijou tells investors in a research note. He points out the overall spine market is growing by only 0%-2%, below the market growth of Smith & Nephew's current end markets. However, the analyst expects the Financial Times' report on Friday of deal talks to put pressure on shares of Wright Medical (WMGI). Many investors believe that Smith & Nephew is a potential acquirer of Wright and a NuVasive deal would make that combo unlikely in the near term, Bijou contends. He keeps a Neutral rating on NuVasive with a $50 price target.