Needham & Company Maintains a 'Hold' on Obagi Medical Products (OMPI); 3Q11 Results Overcome Dire Macro Environment to Surpass Expectations

Needham & Company maintains a 'Hold' on Obagi Medical Products (NASDAQ: OMPI).

Needham analyst says, "What Obagi has lacked on sizzle over the past several quarters has been more than offset by solid execution with numbers again outpacing expectations despite headwinds of heightened consumer anxiety and a substantial curtailment of sales in key market Texas owing to inability to market hydroquinone. While neither of these factors show signs of remedying themselves short-term, our primary concern headed into numbers had been the potential for downside drift based on numerous macro shocks over the quarter and the good news is that OMPI has still been able to meet expectations and maintain guidance despite these obstacles. The downside of course is that the pulse of top-line growth is barely detectable and the story is critically in need of “sex appeal” in the form of additional complementary assets or platform acquisitions. While shares have attractive GARP characteristics, we see little in the way of near-term inflection points that will substantially alter current sentiment."

For an analyst ratings summary and ratings history on Obagi Medical Products click here. For more ratings news on Obagi Medical Products click here.

Shares of Obagi Medical Products closed at $9.16 yesterday.

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