Jefferies Lowers Price Target on Cyberonics (CYBX), Solid Q1 Results Despite Market Trends
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Price: $69.95 --0%
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
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Jefferies is reaffirming its Buy rating on shares of Cyberonics (NASDAQ: CYBX), but is cutting its price target from $37 to $33.
The company reported its first quarter results ahead of the firms expectations with $53 million in revenue and EPS of $0.24. Gross margin, after calculating out non-recurring costs, was 88.5 percent. Operating margin for the quarter was 21.9 percent, down both sequentially and year-over-year based on the aforementioned charge and previously announced increases in SG&A spending.
The firm believes that ASP growth will continue to be the top line driver in terms of revenue.
An analyst at Jefferies comments, "Our model assumes mid-single digit new patient growth and low-double digit replacement growth over the next couple years, with de novo growth continuing to be driven by physician training, hospital customers, and increased penetration from ongoing sales and marketing investments."
Jefferies raised its 2012 EPS estimate from $1.12 to $1.5 and reiterated its 2013 estimate of $1.38.
For more ratings news on Cyberonics click here and for the rating history of Cyberonics click here.
Shares of Cyberonics closed at $26.31 yesterday.
The company reported its first quarter results ahead of the firms expectations with $53 million in revenue and EPS of $0.24. Gross margin, after calculating out non-recurring costs, was 88.5 percent. Operating margin for the quarter was 21.9 percent, down both sequentially and year-over-year based on the aforementioned charge and previously announced increases in SG&A spending.
The firm believes that ASP growth will continue to be the top line driver in terms of revenue.
An analyst at Jefferies comments, "Our model assumes mid-single digit new patient growth and low-double digit replacement growth over the next couple years, with de novo growth continuing to be driven by physician training, hospital customers, and increased penetration from ongoing sales and marketing investments."
Jefferies raised its 2012 EPS estimate from $1.12 to $1.5 and reiterated its 2013 estimate of $1.38.
For more ratings news on Cyberonics click here and for the rating history of Cyberonics click here.
Shares of Cyberonics closed at $26.31 yesterday.
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