Benchmark Raises Price Target on Synergetics USA (SURG), Solid Transformation in Progress

Benchmark is maintaining their Buy rating on shares of Synergetics USA (NASDAQ: SURG) as they are currently trading below their new price target of $7, up from $6. The firm reports that the change is due to them increasing their FY12 EPS estimate to $0.33 from $0.29 and their multiple to 22x from 20x as their visibility on the company's future becomes more clear.

The transformation is progressing well for SURG as disposables expanded to 80% of revenue in FQ2, up from 70% a year earlier.Gross margin also expanded by 1.2% to 58.2%, despite approximately 0.5-1.0 percentage points lost because winter weather closed its manufacturing plants for at least two days during the quarter.

Benchmark comments that, "strong customer interest should drive steadily ramping ophthalmic segment direct sales beginning in the current quarter. OEM equipment orders have about doubled, supported in part by the CMC-V next-generation RF energy generator that was launched in December."

For more ratings news on Synergetics USA click here and for the rating history of Synergetics USA click here.

Shares of Synergetics USA closed at $5.29 yesterday.

---

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

---

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• Merck (MRK) PT Raised to $143 at Truist Securities
• Sage Therapeutics (SAGE) PT Lowered to $18 at Truist Securities