Canaccord Adams Upgrades ArthroCare (ARTC) to Buy; Positive on Equity Investment
ARTC Hot Sheet
Rating Summary:3 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 25 | Down: 12 | New: 36
Canaccord Adams upgrades ArthroCare (OTC: ARTC) from Speculative Buy to Buy. Price target increased to $21.00 from $15.25.
Canaccord analyst says, "ArthroCare announced a $75M private equity investment from One Equity Partners (OEP) for newly issued Series A convertible preferred stock...The capital raise bolsters the company’s balance sheet. With debt eliminated and a strong balance sheet of roughly $65M net cash post the financing (by our estimate), we believe another layer of risk has been removed from the story. In addition, we think the investment and convert price (premium to current price) shows the value in the business...We are raising our price target to $21.00 from $15.25. Our price target is based on a 1.8x EV/sales multiple (20% discount to group) applied to our C2009 revenue estimate of $327.2M. We are also assuming cash and equivalents of $65M, debt of $0M, and 31.6M shares outstanding."
To see more analyst ratings on ARTC Click Here.
Canaccord analyst says, "ArthroCare announced a $75M private equity investment from One Equity Partners (OEP) for newly issued Series A convertible preferred stock...The capital raise bolsters the company’s balance sheet. With debt eliminated and a strong balance sheet of roughly $65M net cash post the financing (by our estimate), we believe another layer of risk has been removed from the story. In addition, we think the investment and convert price (premium to current price) shows the value in the business...We are raising our price target to $21.00 from $15.25. Our price target is based on a 1.8x EV/sales multiple (20% discount to group) applied to our C2009 revenue estimate of $327.2M. We are also assuming cash and equivalents of $65M, debt of $0M, and 31.6M shares outstanding."
To see more analyst ratings on ARTC Click Here.
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