Cantor Fitzgerald Taps Spinal Stocks: 4 Top Picks

Spine stocks were steadied with supportive coverage from the Street this week.

The Ratings

Cantor Fitzgerald analysts Craig Bijou and Jordan Abrams initiated coverage on:

• Globus Medical Inc GMED 0.72% with an Overweight rating and $65 price target;
• K2M Group Holdings Inc KTWO 0.72% with an Overweight rating and $28 price target;
• Orthofix International NV OFIX 1.35% with an Overweight rating and $62 price target; and
• SeaSpine Holdings Corp SPNE 0.59% with an Overweight rating and $16 price target.

They also initiated on Mazor Robotics Ltd – ADR MZOR 0.55% and NuVasive, Inc. NUVA 0.18% with Neutral ratings and respective targets of $57 and $54.

The Thesis

The analysts consider the spine segment — a $9-billion global opportunity — to be the largest orthopedic market and one of the biggest medical device end markets.

“While the spine market has faced a bevy of headwinds and challenges over the last 18 months that [have] suppressed growth, we believe that spine is still an important and relevant market,” Bijou and Abrams said in a note.

In the near-term, the analysts said they expect the Overweight-rated stocks to secure sales and seize share through their differentiated technology, appeal to surgeons and emphasis on growing niches around the spine.

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