New Nevro management a positive for shares, says JPMorgan
JPMorgan analyst Robbie Marcus views the stepping down of Nevro CEO Rami Elghandour as a positive for the shares. The announcement follows two challenging years for the company, with "several notable stops and false starts ultimately culminating in the stock falling from grace," Marcus tells investors in a research note. With the appointment of Keith Grossman as the company's new CEO and the addition of two "experienced, well-regarded" appointees to the board, the stock will likely receive a "notable bump," says the analyst. However, the suspension of revenue guidance likely means that estimates will not being moving up in the near-term, with a potential move downward as new management resets the bar going forward, adds the analyst. Marcus remains on the sidelines with a Neutral rating on Nevro.