Tactile Systems Technology (TCMD) PT Lowered to $45 at Oppenheimer

Oppenheimer analyst Suraj Kalia lowered the price target on Tactile Systems Technology (NASDAQ: TCMD) to $45.00 (from $62.00) while maintaining an Outperform rating.

The analyst commented, "Tactile reported 3Q21 revenue/EPS of $52.5M/($0.17), trailing our $58.0M/$0.17 estimates and consensus' $57.4M/$0.08. FY21 guidance cut on COVID and sales force staffing challenges. While COVID-related issues (clinic access, patient throughput) were familiar, the sales rep attrition was new, though somewhat unsurprising given the recent vaccine mandate executive order. AffloVest closed 9/8, integration progressing, hired all 11 reps; seen as more insulated. Despite the recovery’s pushout, we continue to like TCMD on COVID-19-induced OpEx leverage (more virtual training, less contractor usage), potential new VA referrals (community PCPs), and valuation (TCMD trading at ~2.7x our FY22E revs vs. small-cap peers' ~9.6x). Adjust ests for 3Q results, revised FY21 guide. Lower PT from $62 to $45 on soft outlook."

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