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Gabelli Upgrades AngioDynamics (ANGO) to Hold; Announces $372 Mln Acquisition of Navilyst Medical

February 1, 2012 9:26 AM EST
ANGO Hot Sheet
Rating Summary:
    1 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Gabelli upgraded AngioDynamics (NASDAQ: ANGO) from Sell to Hold.

Analyst, Jeff Jonas, said, "Angiodynamics announced plans to acquire Navilyst Medical for $372 million in cash and stock...The combined company will once again move to separate vascular and peripheral salesforces, allowing each to focus on a smaller number of products and call points...However, Navilyst has seen little or no revenue growth recently, as price and volume pressure in fluid management (61% of sales) offsets growth in vascular access (39%)."

"Overall we think this is a strategic and accretive deal for ANGO. This deal also more than offsets the loss of the LC Bead distribution agreement and does not preclude the company from future tuck-ins to improve the product line. We are upgrading our recommendation to a HOLD now that we are gaining additional visibility into the company’s future."

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

Shares of AngioDynamics closed at $12.96 yesterday, with a 52 week range of $12.05-$17.19.


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