GMED

Globus Medical Inc - Ordinary Shares - Class A

Healthcare


Presented:12/19/2023
Price:$51.79
Cap:$7.14B
Current Price:$74.05
Cap:$10.03B

Presented

Date12/19/2023
Price$51.79
Market Cap$7.14B
Ent Value$5.78B
P/E Ratio33.5x
Book Value$29.78
Div Yield0%
Shares O/S137.79M
Ave Daily Vol1,321,601
Short IntN/A

Current

Price$74.05
Market Cap$10.03B
Globus Medical, Inc. operates as a medical device company that develops and commercializes healthcare solutions. The firm engages in developing products that promote healing in patients with musculoskeletal disorders. It classifies products into Innovative Fusion and Disruptive Technology. It operates through the United States and International geographical segments. The company was founded by David C. Paul, David D. Davidar and Andrew Iott in March 2003 and is headquartered in Audubon, PA.

Publicly traded companies mentioned herein: Alphatec Holdings Inc (ATEC), Becton Dickinson and Company (BDX), Globus Medical Inc. (GMED), Johnson & Johnson (JNJ), Medtronic (MDT), Stryker (SYK)

Highlights

The presenter is long shares of Globus Medical Inc. (GMED) expecting the company to increase its dominant position in the spine market following its merger with NuVasive. GMED has a history as a perennial share gainer with exceptional 30%+ EBITDA margins and should be able to continue to grow above the mid-single-digit annual spine market growth as its salesforce recovers. Despite recent stock downturns due to a merger with NuVasive, the presenter views the deal more positively because it involves two pure-play spine companies, which should reduce cultural shocks and potential salesforce attrition. The anticipation of GMED affirming its 2024 projections in early January presents a significant catalyst for potential re-rating, especially considering the current undervaluation compared to peers in the MedTech sector. 

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Idea Discussion

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