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Spectranetics (SPNC) Target, Estimates Cut at Needham & Company; Stumble Creates Buying Chance

April 8, 2014 6:27 AM EDT
Get Alerts SPNC Hot Sheet
Price: $38.45 --0%

Rating Summary:
    5 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Needham & Company analyst Mike Matson lowered estimates and its price target on Spectranetics (NASDAQ: SPNC) from $35 to $30 after the company guideed Q1 and FY 2014 lower. The firm, however, maintained a Buy rating saying the lead management stumble creates a buying opportunity.

Matson comments, "SPNC pre-announced a revenue miss for 1Q14 and lowered its 2014 guidance given weaker than expected Lead Management sales. While this is disappointing and likely to lead to additional selling pressure, we maintain our Buy rating since we believe that the issues are ultimately transitory in nature, and we expect revenue growth to recover given SPNC's sales force expansion, mechanical lead removal tools launch, and upcoming in-stent restenosis (ISR) approval. In particular, we expect the ISR approval to serve as a significant catalyst later this year. We have lowered our price target to $30 from $35 due to our estimate reduction and peer multiple compression."

The firm cut FY 2014 EPS from ($0.20) to ($0.07) and FY 2015 EPS from $0.14 to $0.13.

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

Shares of Spectranetics closed at $26.11 yesterday.



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