Canaccord Adams Starts AtriCure (ATRC) at Buy; $15 PT

August 12, 2008 12:03 PM EDT

Canaccord Adams initiates coverage on AtriCure (Nasdaq: ATRC) with a Buy rating and a $15 price target.

The firm calls AtriCure an "A-Fib pure play" that will be a winner in this market. Canaccord is estimating a CAGR of 25%+ through 2012 for the A-Fib market. Further, the firm believes AtriCure has "led the way in developing the minimally invasive stand-alone A-Fib segment via its strategy to foster relationships between EPs and surgeons to drive referrals."

Canaccord sees an inflection point approaching the MIS market: "We think a simplified MIS approach that does not require 'expert skills' and drives shorter procedure times will drive a major inflection
point for S/A market growth."

The firm also cites strength in AtriCure's product pipeline; over the next 12-18 months, Canaccord believes AtriCure's 1. cryo probe for concomitant ablations, 2. next-generation Coolrail pen, 3. disposable mapping probe, 4. an upgrade to the Isolator platform, and 5. LAA clip could prove to be catalysts for the stock to move higher.

AtriCure, Inc., a medical device company, engages in the development, manufacture, and sale of cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue.

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