Brean Capital Starts Accuray (ARAY) at Buy
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Price: $2.20 -0.9%
Rating Summary:
10 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
10 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Brean Capital initiates coverage on Accuray (NASDAQ: ARAY) with a Buy. PT $10.00.
The firm comments: "Our thesis is straightforward: ARAY is an inexpensive stock at 1x EV/Sales, with 2 established technology platforms in radiation oncology-- Cyberknife and a vastly improved Tomotherapy (with a combined installed base of 642), and on the verge of profitability. Monday's ASTRO meeting promises the start of 2 major product initiatives, combined with a reorganized U.S. sales force and a new CEO should help boost the outlook. This past quarter was disappointing, as system revenues were down 28%, and F2013 guidance was backend loaded (due to market anticipation of revamped systems), but order rates, the most important metric, continued to increase. This all makes for a compelling risk/reward paradigm, as we believe that the company can deliver on already low expectations and trade at least 1.5x sales to reach our $10 target price."
For an analyst ratings summary and ratings history on Accuray click here. For more ratings news on Accuray click here.
Shares of Accuray closed at $6.52 yesterday.
The firm comments: "Our thesis is straightforward: ARAY is an inexpensive stock at 1x EV/Sales, with 2 established technology platforms in radiation oncology-- Cyberknife and a vastly improved Tomotherapy (with a combined installed base of 642), and on the verge of profitability. Monday's ASTRO meeting promises the start of 2 major product initiatives, combined with a reorganized U.S. sales force and a new CEO should help boost the outlook. This past quarter was disappointing, as system revenues were down 28%, and F2013 guidance was backend loaded (due to market anticipation of revamped systems), but order rates, the most important metric, continued to increase. This all makes for a compelling risk/reward paradigm, as we believe that the company can deliver on already low expectations and trade at least 1.5x sales to reach our $10 target price."
For an analyst ratings summary and ratings history on Accuray click here. For more ratings news on Accuray click here.
Shares of Accuray closed at $6.52 yesterday.
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