UPDATE - GARP Research Initiates Coverage on Conceptus (CPTS) with a Buy; Very Compelling Valuation
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Price: $31.02 --0%
Rating Summary:
2 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
2 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UPDATE - GARP Research initiates coverage on Conceptus (NASDAQ: CPTS) with a Buy.
GARP analyst said, "We believe the firm’s Essure device is in the early stages of replacing tubal ligations as the standard of care for female permanent birth control, which is a $600 million opportunity in the US alone. We think several catalysts could drive adoption well beyond the 10% experienced today within the next few years, specifically the ACOG endorsement of hysteroscopic sterilization as the standard of care, the 50% expansion of the company’s sales force, and new partnership with a division of J&J (NYSE: JNJ)."
"We expect the macro headwinds and competitive disruptions that led to a surprisingly large revenue decline in 1Q11 to ease soon, reigniting 20%-plus top-line growth. This, coupled with the significant amount of operating leverage the company enjoys could quadruple EPS over the next three years...At $13, shares trade under 11x our 2013 EPS estimate of $1.20, a very compelling valuation for the 50%-plus annual earnings growth we envision."
To see all upgrades/downgrades on shares of CPTS, visit our Analyst Ratings page.
GARP analyst said, "We believe the firm’s Essure device is in the early stages of replacing tubal ligations as the standard of care for female permanent birth control, which is a $600 million opportunity in the US alone. We think several catalysts could drive adoption well beyond the 10% experienced today within the next few years, specifically the ACOG endorsement of hysteroscopic sterilization as the standard of care, the 50% expansion of the company’s sales force, and new partnership with a division of J&J (NYSE: JNJ)."
"We expect the macro headwinds and competitive disruptions that led to a surprisingly large revenue decline in 1Q11 to ease soon, reigniting 20%-plus top-line growth. This, coupled with the significant amount of operating leverage the company enjoys could quadruple EPS over the next three years...At $13, shares trade under 11x our 2013 EPS estimate of $1.20, a very compelling valuation for the 50%-plus annual earnings growth we envision."
To see all upgrades/downgrades on shares of CPTS, visit our Analyst Ratings page.
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