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Piper Jaffray Transitions Rating on AtriCure (ATRC) to Underweight; Risk/Reward Less Attractive

July 1, 2009 9:13 AM EDT
ATRC Hot Sheet
Rating Summary:
    5 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Piper Jaffray & Co. transitions rating on AtriCure (Nasdaq: ATRC) to Underweight.

Piper analyst says, "We now rate AtriCure Underweight given that its risk/reward profile appears less attractive than its peers. Relative to our target price of $4.00, the stock still offers 10%+ potential appreciation. However, with the risk associated with the ongoing Department of Justice investigation, we'd like to see a greater reward potential...With the stock valued at roughly 1x our C10 revenue estimate, it trades at a discount to other small cap cardiology companies. Under normal circumstances, we'd argue that companies competing in the AF space could trade at a premium to the group given the growth prospects in the space. But in this instance, we think a discount is warranted given the uncertainty tied to the ongoing DOJ investigation...DOJ Investigation Continues To Be An Overhang."

To see more analyst ratings on ATRC Click Here.

AtriCure, Inc. is a medical device company that develops, manufactures and sells cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac, or heart, tissue.

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