AngioDynamics (ANGO) PT, Estimates Cut at Piper Jaffray Following 'Tough' Qtr

Piper Jaffray analyst Thomas Gunderson cut estimates and his price target on Neutral-rated AngioDynamics (NASDAQ: ANGO) to $18 (from $21) following a "tough" quarter.

Gunderson commented, "ANGO reported Q3 (Feb) results that were below ours and consensus expectations; Q4 guidance was also lower than Street estimates. The causes of the miss were: FX impact on OUS revenues, a product withdrawal from the market; reduced demand for a varicose vein procedure; and delays in launching key new products. Historically, the business model has seen improvements as ANGO integrated its three 2012 acquisitions, reorganized the sales forces, consolidated manufacturing. But ANGO’s growing pains include a string of surprises beyond the Q3 issues (e.g. FDA compliance and evaluation concerns, ERP integration hiccups, accounting corrections, etc) that have kept the stock valuation depressed. While progress is being made, consistency of performance has been tripped up intermittently, notably in Q3. We reiterate our Neutral rating and lower our price target from $21/share to $18/share to reflect our lower estimates and a lower multiple due to a higher degree of uncertainty."

The firm cut FY 2015 EPS from $0.69 to $0.60 and FY 2016 EPS from $0.77 to $0.67.

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 $18.25 yesterday.

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