Canaccord Adams Reiterates a 'Buy' on ev3 (EVVV); Management Team Continues to Execute

October 28, 2009 11:55 AM EDT

Canaccord Adams reiterates a 'Buy' rating on ev3 (Nasdaq: EVVV), raises price target to $27.

Canaccord analyst says, "Outstanding margin expansion story unfolding – GM of 74.6% jumped 250bps Q/Q and over 1000 Y/Y, handily beating our 72.1%E, driven by FOXH manufacturing consolidation, efficiencies and product mix. Ev3 sees further expansion and we raise our forward GM assumptions. What’s more, EVVV coupled GM expansion with solid expense control, as SG&A declined to 48.8% sales from 50.2% Q/Q and 54.6% in 2008. With more SG&A leverage in the cards going forward, in our estimation, we see OM increasing from -8% in 2008 to 12% in 2011. Guidance increased for third quarter in a roGuidance row - 2009 revenue guidance is now $446-$450M from $435-$445M and includes $6-7M from Chestnut, up from $4-5M previously. Adjusted EPS guidance increased to $0.58-$0.62 from $0.47-$0.52. Our revenue/EPS estimates go to $449M/$0.60 from $440M/$0.50. For 2010E we model $510M/$0.79 from $498M/$0.73. We introduce 2011 estimates of $572M/$1.01."

"The NV business is well positioned-with a strong core business coupled with a robust product pipeline; thus we believe it can sustain 20%+growth. We think PV sales have stabilized, and expect Y/Y growth beginning in Q4. Lastly, we think ev3 is an attractive acquisition target."

To see more analyst ratings on EVVV Click Here.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Canaccord Adams

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?