Market sentiment toward Globus Medical received a significant boost following the latest round of analyst commentary. Two prominent financial institutions have substantially increased their price targets for the medical device company’s stock, citing a constructive outlook for the coming year and recent financial performance.
Revised Price Targets Signal Strong Upside
In a clear vote of confidence, analysts from RBC Capital Markets and Canaccord Genuity have raised their projections for Globus Medical shares. RBC lifted its target to $100 from $92, reiterating an “Outperform” rating. Canaccord Genuity was even more bullish, increasing its target to $105 from $90 and maintaining a “Buy” recommendation. With the stock last closing at $85.06, these new targets imply a potential upside of approximately 17% to 23%, bringing the share price closer to its 52-week high of $94.93.
Robust Quarterly Performance Underpins Optimism
The analyst upgrades follow a notably strong third-quarter report for 2025. The company posted earnings per share (EPS) of $1.18, significantly surpassing the consensus estimate of $0.79. Revenue saw substantial growth, climbing 22.9% to reach $769.05 million. For the full 2025 fiscal year, management has provided EPS guidance in the range of $3.75 to $3.85. This execution demonstrates the company’s ability to maintain its own growth trajectory within the competitive musculoskeletal solutions space, despite facing larger industry players like Stryker and Medtronic.
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Rationale Behind the Upgraded Outlook
The raised targets are supported by more than just one quarter’s results. Analysts point to a favorable setup for 2026, including what they view as subdued valuation levels for small- and mid-cap stocks and an anticipated increase in merger and acquisition activity within the sector. The potential for artificial intelligence to enhance surgical outcomes is also seen as a longer-term tailwind. RBC Capital specifically models an underlying revenue growth rate of 4% to 5% for Globus Medical in 2026. The current market valuation is seen as reflecting expectations for sustained double-digit growth.
Ownership and Execution Are Key
While institutional ownership remains elevated at around 95%, one notable change occurred in the second quarter of 2025. Thrivent Asset Management reduced its position by approximately 65%, selling about 458,403 shares. Looking forward, the primary drivers for the stock to achieve the new price targets will be consistent operational execution. The company must deliver on the expected revenue growth and demonstrate efficiency gains, alongside tangible contributions from its AI-supported applications. Should growth fall short of these benchmarks, the stock’s near-term appreciation potential is likely to be constrained.
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