Needham & Company Reiterates a 'Buy' on MELA Sciences (MELA); Updating Earnings Model For Offering

Needham & Company reiterates a 'Buy' on MELA Sciences (NASDAQ: MELA) price target of $20.00.

Needham analyst says, "On December 15, 2011 MELA offered 5 M shares in a registered offering, raising an anticipated net of $14.9 M to the company. This excludes 42,915 shares sold to the company’s CEO, Joseph Gulfo, and new board member, Robert Coradini, at $3.97 per share (the closing price of the shares on the date of the transaction). In this note, we update our earnings model for the impact of the offering, recap recent significant developments and reiterate our Buy."

"For 2016, which is the farthest our model currently forecasts, our revenue estimate is unchanged at $222.6 M. Based on higher dilution from the deal priced at $3.25 versus our assumption of $5.00, the EPS for that year is now $2.95 compared to our previous estimate of $3.15.(Needham raises FY12 EPS estimate from (0.90) to (0.82))

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 $3.42 yesterday.

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