Cowen & Co Initiates Coverage on CardioNet (BEAT) with an Outperform

September 5, 2008 8:58 AM EDT

Cowen & Co initiates coverage on CardioNet (Nasdaq: BEAT) with an Outperform.

Cowen analyst says, "CardioNet's Mobile Cardiac Outpatient Telemetry (MCOT) is gaining traction in the US outpatient arrhythmia diagnostic marketplace, driven by technology advantages, an expanded commercial footprint, and improving reimbursement trends. Given low penetration rates, and good momentum coming out of H1 - we do believe the company is well positioned to exceed our revenue estimates in the short run, and we see opportunity for the company to outperform our 2-3 year earnings expectations as well...Over the next several years, we expect CardioNet to deliver notable op. margin expansion and earnings growth. GM expansion and bad debt reduction represent two key areas of leverage in the model, as well as overall inherent leverage at higher sales levels."

Cardionet, Inc. is a provider of ambulatory, continuous, real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health.

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