Canaccord Adams Maintains a 'Buy' on Obagi Medical Products (OMPI); Raises PT

November 6, 2009 1:12 PM EST

Canaccord Adams maintains a 'Buy' on Obagi Medical Products (Nasdaq: OMPI), raises price target from $16 to $17.50.

Canaccord analyst says, "Obagi Medical reported Q3/09 results with revenues of $24.9M and EPS of $0.14. Revenues fell below our estimate for $25.4M and consensus estimates for $25.3M, while EPS in the quarter were in line with expectations. Management offered guidance for the Q4/09, expecting revenues of $25M-$27M and EPS of $0.16-$0.18. Guidance was in line with current expectations...Seasonal weakness impacted product sales in the quarter; however, several sales
initiatives, new account growth, and strength from the international markets suggest that business is moving in the right direction for 2010...We are raising our price target on Obagi Medical to $17.50 from $16.00. Our price target is based on a 23.6x PE multiple applied to our 2010E EPS of $0.75."

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