Ascendiant Capital Starts PhotoMedex (PHMD) at Buy; Market Growing; Attractive Valuation

May 4, 2012 9:23 AM EDT
Get Alerts PHMD Hot Sheet
Price: $2.14 -7.36%

Rating Summary:
    2 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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Ascendiant Capital initiates coverage on PhotoMedex (NASDAQ: PHMD) with a Buy. PT $18.50.

Analyst, Keay Nakae, said, "We believe that the December 2011 merger with the privately held Radiancy, has resulted in PhotoMedex becoming a much stronger company. The former PhotoMedex struggled to gain traction with its XTRAC laser therapy, used to treat inflammatory skin disease, and therefore struggled to achieve profitability. Thus, PHMD was an underperforming stock. The new PhotoMedex is now on track to generate over $150 MM in annual revenue, is solidly profitable, has essentially no debt, and is capable of generating meaningful free cash flow. We believe that the Company is well positioned to achieve faster revenue growth than its competitors and thus represents one of the more attractive investments in this segment."

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

Shares of PhotoMedex closed at $16.34 yesterday.

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