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Needham & Company Cuts Price Target on Spectranetics (SPNC) to $24 Following 2Q15

July 24, 2015 6:44 AM EDT
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Price: $38.45 --0%

Rating Summary:
    5 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Needham & Company reiterated a Buy rating on Spectranetics (NASDAQ: SPNC), and cut the price target to $24.00 (from $39.00), following 2Q15 results. Revenue was $61.7M missing consensus of $62.2M. Non-GAAP EPS was reported at ($0.22) vs. consensus of ($0.29). SPNC lowered its 2015 revenue guidance from $258M to $240-250M, and maintained its non-GAAP EPS guidance of ($1.07)-($0.96).

Analyst Mike Matson commented, "SPNC missed consensus revenue and beat EPS estimates given further cannibalization of AngioSculpt by drug-coated balloons (DCBs) and weaker laser and lead management sales. Given this, SPNC has chosen to redeploy resources to the Vascular Intervention business and intensify its Stellarex commercialization efforts. Management also significantly lowered its 2015 revenue guidance though it maintained its non-GAAP EPS guidance due to cost reductions. We now conservatively value SPNC shares at $24 based on 4.0x our new lower 2016E revenue plus ~$100M for Stellarex. While we acknowledge a lack of near-term catalysts and that SPNC shares could be "dead money" in the near-term, we expect shares to be significantly higher in a year and maintain our Buy rating."

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

Shares of Spectranetics closed at $24.83 yesterday.



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