Needham & Company Cuts Price Target on AtriCure (ATRC) to $20; Reiterates Buy
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Needham & Company maintained a Buy rating on AtriCure Inc. (NASDAQ: ATRC), and cut the price target to $20.00 (from $23.00), following the company's 2Q earnings report. Revenue was reported at $39.7M, a slight beat to the consensus estimate of $39.8M. EPS was ($0.26), ahead of consensus of ($0.30). ATRC lowered its guidance for reported revenue growth to 20-22% from 25%.
Analyst Mike Matson commented, "ATRC's 2Q16 revenue met consensus while its EBITDA and EPS beat consensus. Management lowered its 2016 revenue guidance but maintained its EBITDA and EPS guidance. ATRC noted that the guidance reduction was driven by 1) disruption that resulted from back-filling the positions of several highperforming reps that were promoted into management positions and 2) distraction as reps focused on the new nContact products rather than the Open Ablation and AtriClip products. We believe that these issues are temporary and expect ATRC's revenue growth to improve with time. Additionally, we believe that skepticism about ATRC's ability to meet the revenue ramp implied by its prior guidance had been weighing on its shares. With this concern now off the table, we expect investors to revisit ATRC shares and we maintain our Buy rating."
Shares of AtriCure Inc. closed at $14.82 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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