Piper Sandler has reiterated its Overweight rating on LivaNova PLC (NASDAQ:LIVN) and maintained an $85.00 price target, a level the firm says implies roughly a 26% premium to the stock's recent price of $67.42. LivaNova shares have been trading near their 52-week high of $68.
The firm expects LivaNova to report a fourth-quarter result that outperforms consensus on both revenue and earnings. For fiscal year 2026, Piper Sandler outlined guidance assumptions it expects the company to issue - revenue growth of 5-7% excluding foreign exchange and adjusted earnings per share in a $4.10 to $4.25 range. That EPS range corresponds to 6-10% year-over-year growth on an adjusted basis.
Piper Sandler noted that these FY26 figures are consistent with recent performance: InvestingPro data cited by the firm shows 8.6% revenue growth over the last twelve months. The analyst emphasized two business lines as potential drivers of upside beyond the current forecast - the epilepsy franchise, where reimbursement changes took effect on January 1, 2026, and the cardiopulmonary segment.
The brokerage highlighted several profitability and cash-flow metrics that underpin its view. LivaNova continues to report a strong gross profit margin of 69.4% and has generated $191.4 million in levered free cash flow, figures the analyst cited when arguing that the market may be underestimating the impact of recent reimbursement decisions.
On valuation, Piper Sandler suggested there is opportunity for multiple expansion should the company sustain execution. The analyst described LivaNova as its favored small- to mid-cap value name and said fiscal 2026 appears positioned to be another constructive year for both the business and the stock.
Alongside Piper Sandler's coverage, the company announced some executive and commercial moves. Chief Legal Officer Michael Hutchinson resigned to pursue another opportunity; LivaNova said it will retain an external search firm to identify a replacement.
On the commercial front, LivaNova appointed Lucile Blaise as Global Head of Commercialization for its Obstructive Sleep Apnea business. The company noted Blaise has over 25 years of experience in the medical technology sector.
Other broker activity included Stifel raising its price target on LivaNova to $70, citing steady growth in the company's Cardiopulmonary business, which the firm said represents 57% of total sales and has delivered three consecutive years of double-digit revenue growth. KeyBanc initiated coverage with an Overweight rating and a $81 price target, flagging additional growth opportunities.
In regulatory developments that directly affect the epilepsy franchise, the U.S. Centers for Medicare & Medicaid Services will materially increase reimbursement rates for LivaNova's VNS Therapy for drug-resistant epilepsy beginning January 1, 2026. The change raises hospital outpatient payments for new patient implants by approximately 48% and uplifts end-of-service procedure payments by about 47%.
Combined, these operational, regulatory and financial developments frame the recent strategic and financial moves at LivaNova. Piper Sandler and other brokers appear to be positioning their outlooks around the company's durable margins, cash generation and the potential earnings and revenue uplift tied to improved reimbursement and sustained cardiopulmonary momentum.
Sector impact - The updates relate primarily to the medical technology and healthcare reimbursement environment, with implications for medtech device makers dependent on hospital outpatient payment schedules. Financial markets that price medtech small- and mid-cap equities may also re-evaluate multiples if the company delivers on FY26 expectations.