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Fly News Breaks for April 1, 2015
NUVA
Apr 1, 2015 | 15:39 EDT
Brean Capital said the resignation of former NuVasive CEO Alex Lukianov, who founded the company, doesn’t necessarily change the company's outlook, though the firm is concerned about possible sales force defections after the change. The firm also thinks Lukianov’s departure increases the likelihood of an acquisition and that an appropriate takeout multiple of 3.5x-4.5x EV to sales would imply a price of $50-$65 per share, though the firm noted that it is not assuming a buyout in arriving at its $55 price target for the stock. Brean has a Buy rating on NuVasive shares.
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