Needham & Company Reiterates a 'Buy' on MELA Sciences (MELA); Updating Our Earnings Model
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Price: $1.12 --0%
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 6
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Needham & Company reiterates a 'Buy' on MELA Sciences (NASDAQ: MELA) price target of $20.00.
Needham analyst says, "We are now forecasting that the company will reach break-even in 1Q14, one quarter later than our previous estimate. Although we are still forecasting that the company will place the same number of MelaFinds over that period, an adjustment in the way we calculate forecasted revenue, which reduces it by about $4.0 M per year, is the driver of the one quarter push out."
"We are adding estimates for 2016 to maintain the five year horizon of our model. We are forecasting revenue in that year of $222.5 M and EPS of $3.15. This is based on the placement of 900 additional MelaFinds over the course of the year and a year-ending installed base just over 3,000 units. Given the potential market sizes of the two countries MELA plans to launch in during 1Q12 (10,000 dermatologists in the U.S., 5,000 in Germany) and the likelihood that the company will launch in additional markets prior to 2016, we think this is a conservative estimate."
For an analyst ratings summary and ratings history on MELA Sciences click here. For more ratings news on MELA Sciences click here.
Shares of MELA Sciences closed at $5.02 yesterday.
Needham analyst says, "We are now forecasting that the company will reach break-even in 1Q14, one quarter later than our previous estimate. Although we are still forecasting that the company will place the same number of MelaFinds over that period, an adjustment in the way we calculate forecasted revenue, which reduces it by about $4.0 M per year, is the driver of the one quarter push out."
"We are adding estimates for 2016 to maintain the five year horizon of our model. We are forecasting revenue in that year of $222.5 M and EPS of $3.15. This is based on the placement of 900 additional MelaFinds over the course of the year and a year-ending installed base just over 3,000 units. Given the potential market sizes of the two countries MELA plans to launch in during 1Q12 (10,000 dermatologists in the U.S., 5,000 in Germany) and the likelihood that the company will launch in additional markets prior to 2016, we think this is a conservative estimate."
For an analyst ratings summary and ratings history on MELA Sciences click here. For more ratings news on MELA Sciences click here.
Shares of MELA Sciences closed at $5.02 yesterday.
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