Canaccord Adams Upgrades ArthroCare (ARTC) to Buy; Positive on Equity Investment
More News related to ARTC
- ArthroCare Files Its Second Quarter Form 10-Q for 2009
- ArthroCare Completes Restatement of Financial Statements and Files Its Form 10-K for 2008
- ArthroCare Names David Fitzgerald President and CEO
- Canaccord Adams Upgrades ArthroCare (ARTC) to Buy; Positive on Equity Investment
- ArthroCare (ARTC) Announces Investigations by SEC and US Attorney Offices; CEO Departure and Management Changes
Canaccord Adams upgrades ArthroCare (OTC: ARTC) from Speculative Buy to Buy. Price target increased to $21.00 from $15.25.
Canaccord analyst says, "ArthroCare announced a $75M private equity investment from One Equity Partners (OEP) for newly issued Series A convertible preferred stock...The capital raise bolsters the company’s balance sheet. With debt eliminated and a strong balance sheet of roughly $65M net cash post the financing (by our estimate), we believe another layer of risk has been removed from the story. In addition, we think the investment and convert price (premium to current price) shows the value in the business...We are raising our price target to $21.00 from $15.25. Our price target is based on a 1.8x EV/sales multiple (20% discount to group) applied to our C2009 revenue estimate of $327.2M. We are also assuming cash and equivalents of $65M, debt of $0M, and 31.6M shares outstanding."
To see more analyst ratings on ARTC Click Here.
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