Barrington Research Raises Price Target on Thoratec (THOR), Sets EPS Estimates Well Below Expectations
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Barrington Research is maintaining its Outperform rating on shares of Thoratec (NASDAQ: THOR) following the release of its Q4 results and is raising its price target from $36 to $38.
The company reported solid Q4 results as total revenues grew 12 percent on strong U.S. unit sales. THOR also released FY12 guidance which calls for $445-$460 million in revenues and earnings of $1.580$1.68 per share on a non-GAAP basis.
"We believe THOR’s market growth expectations are conservative and there is upside to the numbers if the market grows faster," an analyst at Barrington research comments. "There is also upside if there is a more restrictive label for HTWR regarding its “centered” device. If there is a panel meeting as we would expect, there could be a concern regarding the approval of the centered device without the clinical data to support such an indication. If the indication were more restrictive, that would significantly affect HTWR’s ability to take market share. On the flip side, if we are wrong and HTWR doesn’t need a panel for some unusual reason, then the product could be approved by Q2/12 and revenue expectations would likely have to come down.
For Q1 and FY12, the firm forecasts EPS of $0.35 and $1.59, well below the Street's consensus of $0.41 and $1.64. Barrington Research also predicts FY13 earnings of $1.69 per share, much weaker than the Street's consensus of $1.72.
For an analyst ratings summary and ratings history on Thoratec click here. For more ratings news on Thoratec click here.
Shares of Thoratec closed at $34.19 yesterday, with a 52 week range of $24.75-$38.07.
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The company reported solid Q4 results as total revenues grew 12 percent on strong U.S. unit sales. THOR also released FY12 guidance which calls for $445-$460 million in revenues and earnings of $1.580$1.68 per share on a non-GAAP basis.
"We believe THOR’s market growth expectations are conservative and there is upside to the numbers if the market grows faster," an analyst at Barrington research comments. "There is also upside if there is a more restrictive label for HTWR regarding its “centered” device. If there is a panel meeting as we would expect, there could be a concern regarding the approval of the centered device without the clinical data to support such an indication. If the indication were more restrictive, that would significantly affect HTWR’s ability to take market share. On the flip side, if we are wrong and HTWR doesn’t need a panel for some unusual reason, then the product could be approved by Q2/12 and revenue expectations would likely have to come down.
For Q1 and FY12, the firm forecasts EPS of $0.35 and $1.59, well below the Street's consensus of $0.41 and $1.64. Barrington Research also predicts FY13 earnings of $1.69 per share, much weaker than the Street's consensus of $1.72.
For an analyst ratings summary and ratings history on Thoratec click here. For more ratings news on Thoratec click here.
Shares of Thoratec closed at $34.19 yesterday, with a 52 week range of $24.75-$38.07.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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