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Jefferies Downgrades ArthroCare (ARTC) to Hold, Cuts Numbers

February 17, 2012 7:01 AM EST Send to a Friend
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Price: $48.52 -0.23%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Jefferies downgraded ArthroCare (NASDAQ: ARTC) from Buy to Hold with a price target of $25 (down from $32).

The firm comments, "Our thesis on ARTC has been partially based on the eventual acquisition of the company. However, because of a new and entirely unexpected DOJ civil investigation, this outcome is not likely anytime soon. Given the underlying performance of the business, the valuation at current levels is unsupportable without the premium a potential acquisition provides. We are downgrading to Hold and lowering our price target to $25 from $32."

The firm cut Q1 EPS from $0.39 to $0.36 and FY12 from $1.62 to $1.45. FY13 was maintained at $1.60.

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

Shares of ArthroCare closed at $30.77 yesterday.




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