Piper Jaffray Cuts Price Target on Endologix (ELGX) to $20 Following 2Q15

Piper Jaffray maintained an Overweight rating on Endologix (NASDAQ: ELGX), and cut the price target to $20.00 (from $21.00), following 2Q15 results. Endologix reported revenues of $39.5M, just ahead of consensus $39.4M.

Analyst Brooks West commented, "Endologix reported 2Q15 revenues of $39.5M (+8%cc) just ahead of consensus $39.4M and in-line with PJC $39.5M. Nellix European revenue growth accelerated to 34% (from 32% in Q1) with 160 EU accounts now performing Nellix cases. Overall Nellix unit volumes (including the US CAP) were up 40% y/y and 29% sequentially. On a geographic basis, US revenues outperformed our estimates but despite strong EU Nellix performance, weaker legacy AFX sales brought overall international sales in below our number. While Nellix growth trends are expected to continue, mgmt again reduced FY15 guidance bringing the mid-point of revenues down by ~2%, or $3.5M (now $154-157M, or 8-10%cc growth, from the low end of $159-165M, or 10-14%cc growth) from on an expected lag in the US Nellix CAP in 2H15 and a more conservative cut at international growth. Reiterate OW on our core Nellix thesis, reduce PT to $20 from $21."

For an analyst ratings summary and ratings history on Endologix click here. For more ratings news on Endologix click here.

Shares of Endologix closed at $14.06 yesterday.

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