Wells Fargo Starts Vocera Communications (VCRA) at Market Perform; Good Hospital Productivity Play, But Fairly Valued

Wells Fargo initiates coverage on Vocera Communications (NYSE: VCRA) with a Market Perform. PT $23.00.

Analyst, Jamie Stockton, said, "The company provides a hands-free Wi-Fi communication system to roughly 10% of hospitals in the United States and less than 1% of international hospitals. Its solution helps hospitals improve labor productivity and quality of care through faster, more direct communication between hospital employees. While we believe there is a clear ROI for Vocera's solution and its relatively small footprint should drive revenue growth around management's 25% goal, the shares are up 36% from the recent IPO and already reflect an appropriate premium at 4.0x our 2013E EV/Sales versus the HCIT group at 2.7x."

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

Shares of Vocera Communications closed at $21.73 yesterday.

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