Benchmark Upgrades RTI Biologics (RTIX) to Buy, Strong Earnings and Less Risk

Benchmark upgraded shares of RTI Biologics (NASDAQ: RTIX) to a Buy rating while increasing its price target by $1 to $4.

The firm notes that the upgrade reflects better than expected Q2 earnings and on the basis that Spine risks are abating. The company released its Q2 results with $43.5 million in revenue and EPS of $0.04, ahead of the firms estimates of $40.9 million and $0.03.

The company raised its 2011 guidance from $159-$162 million revenue and $0.11-$0.13 EPS to $164-$166 million revenue and $0.12-$-0.14 EPS. Management also released its Q3 guidance with a revenue range of $40-$41 million and EPS of $0.03.

An analyst at Benchmark comments, "As minimally manipulated tissues RTI does not anticipate MAPC products requiring FDA marketing clearance. Starting in 2013 we increased our Bone Graft Substitutes annual growth rate to 20%, to begin incorporating this exciting opportunity."

As a result of current market trends and new guidance, Benchmark increased its 2012 EPS estimate from $0.15 to $0.18 but is maintaining its 2011 estimate of $0.12.

For more ratings news on RTI Biologics click here and for the rating history of RTI Biologics click here.

Shares of RTI Biologics closed at $3.24 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Lowe's (LOW) PT Lowered to $275 at Guggenheim
• BofA Securities Starts Mobility Global (MBGL) at Neutral
• UBS Downgrades Vicinity Centers (VCX:AU) (CNRAF) to Neutral