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Piper Jaffray Cuts Price Target on Nxstage Medical (NXTM) Following Mixed 4Q Results

February 11, 2016 9:23 AM EST
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Price: $30.00 --0%

Rating Summary:
    5 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Piper Jaffray maintained an Overweight rating on NxStage Medical (NASDAQ: NXTM), and cut the price target to $23.00 (from $24.00), following the company's 4Q earnings report. Revenue exceeded expectations, while net loss was in-line with Street estimates. 2016 revenue guidance was lower than Street estimates due to a $20M reduction in in-center revenue attributable to a drawdown in the Gambro blood tubing contract.

Analyst Kevin Ellich commented, "NXTM reported solid Q4 results with revenue exceeding expectations, while net loss was in-line with Street estimates. 2016 revenue guidance surprised to the downside due to a negative $20M impact from the Gambro blood tubing set contract, which is happening a few quarters earlier than management expected. While the revenue guidance shortfall is a near-term disappointment, we believe NXTM's long-term growth strategy and next generation product pipeline remain in good shape and on track. We maintain our Overweight rating and lower our PT to $23. We think expectations have been reset appropriately and NXTM has some growth opportunities in nocturnal and skilled nursing that could drive incremental growth over the next couple of years."

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

Shares of NxStage Medical closed at $15.16 yesterday.



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