Despite a 33 percent drop in value since the end of 2019, Globus Medical is in a position to leverage its assets and acquire companies in this depressed market, according to Benzinga.
The COVID-19 pandemic has drastically slashed company valuations and could potentially prevent a near-time rebound in shares. The coronavirus pandemic is also causing elective procedures to be postponed, which will result in a low-demand for spine procedures.
However, Globus Medical's operating profile is stronger than its peers, as the company holds $721 million in cash, no debt and a share buyback authorization around $200 million. Because of this excess, BTIG's Ryan Zimmernan said Globus is in a position to take advantage of the depressed market and buy complementary assets at discounted levels. If Globus does this, BTIG believes the company could still report positive growth figures in 2020.