10:42 AM EST, 11/07/2025 (MT Newswires) -- Globus Medical ( GMED ) can continue delivering cash flow and has the ability to compound profits higher, Bank of America Securities said in a Thursday research note.

Legacy growth in Q3 was driven by acceleration in the US spine segment volume growth, which could be attributed to higher competitive recruiting, pull-through on robots, and the rollout of new products, according to the note.

The company acquired medical device company Nevro earlier this year, which grew 4.9% sequentially in Q3, and recorded an EBITDA margin of 16.2%. BofA said it sees more room for higher Nevro margins.

The brokerage said it raised its 2025, 2026, and 2027 EPS guidance to $3.80, $4.26, and $4.54, respectively, from $3.21, $3.56, and $4.20 earlier.

Emerging tech was weaker than the company expected this year. Higher 2025 lease mix was a factor, but most of the company's robotic sales are cash deals. It remains focused on closing more deals for the remainder of the year, analysts wrote.

The brokerage said it upgraded the stock to buy form neutral and raised its price target to $91 per share from $65.

Shares of Globus Medical ( GMED ) rose over 32% in recent trading Friday.

Price: 81.52, Change: +19.81, Percent Change: +32.10