Needham & Company Maintains Buy on MELA Sciences (MELA), Cuts Price Target
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Price: $0.83 -2.35%
Rating Summary:
3 Buy, 0 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
3 Buy, 0 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade MELA Now!
Today Needham & Company maintained their Buy rating MELA Sciences (NASDAQ: MELA) but cut their price target to $15.00 (from $20.00).
"MELA management has never spelled out a launch strategy beyond the controlled initial placements," commented analyst Dalton Chandler, "but with two quarters of commercial sales in the books it is clear that our assumptions were for a different trajectory."
"Although our new estimates end up with an installed base about the same as before, with a little over 3,000 units placed, it appears that the company’s intended growth path is steeper than ours. Coupled with a change in accounting for placement revenue that impacts total revenue, but not cash flow, our revenue estimates come down sharply for 2016, the year we base our valuation on," he said.
For an analyst ratings summary and ratings history on MELA Sciences click here. For more ratings news on MELA Sciences click here.
Shares of MELA Sciences closed at $3.26 yesterday, with a 52 week range of $1.75-$6.96.
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"MELA management has never spelled out a launch strategy beyond the controlled initial placements," commented analyst Dalton Chandler, "but with two quarters of commercial sales in the books it is clear that our assumptions were for a different trajectory."
"Although our new estimates end up with an installed base about the same as before, with a little over 3,000 units placed, it appears that the company’s intended growth path is steeper than ours. Coupled with a change in accounting for placement revenue that impacts total revenue, but not cash flow, our revenue estimates come down sharply for 2016, the year we base our valuation on," he said.
For an analyst ratings summary and ratings history on MELA Sciences click here. For more ratings news on MELA Sciences click here.
Shares of MELA Sciences closed at $3.26 yesterday, with a 52 week range of $1.75-$6.96.
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