Piper Jaffray Cuts Price Target on Nuvectra Corporation (NVTR) Following 2Q Revenue Beat

August 11, 2016 8:19 AM EDT
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Price: $6.31 +0.48%

Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Piper Jaffray maintained a Neutral rating on Nuvectra Corporation (NASDAQ: NVTR), and cut the price target to $10.00 (from $12.00), following the company's 2Q earnings report. NVTR reported revenue of $2.6M, compared with $2.4M estimates.

Analyst Brooks West commented, "Nuvectra reported 2Q16 revenue of $2.6M vs. our $2.4M as stronger revenues related to NVTR’s partnership with Aleva Neurotherapeutics and volume of component sales from its NeuroNexus subsidiary offset a slower ramp in Algovita SCS ramp versus our model. Management stated that it is focused on the build out of its SCS field force with 28 current active territories and ~10 territories scheduled to complete training by the end of August. This leaves the company on track to have ~50 active territories by the end of 3Q16. That said, we have taken a more conservative approach to our first year Algovita ramp assumptions given the lag in navigating hospital and ASC purchasing departments cited by management along with the natural 3-month progression of patients from identification to permanent implant. We reiterate our N rating, lowering PT to $10 from $12."

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

Shares of Nuvectra Corporation closed at $6.64 yesterday.

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