Summer Street Upgrades Tornier (TRNX) to Neutral

Summer Street upgraded Tornier (NASDAQ: TRNX) from Sell to Neutral.

"Better management of end-of-contract transitions and delayed sales dissynergies led to 1Q:14 results that were well ahead of guidance, consensus, and our estimates," said analyst Mark Landy. "The quarter represented the second consecutive quarter of smaller than guided sales disruptions, and a possible takeaway is that management has learned its lesson from its 3Q13 mistakes and is doing a better than expected job in managing sales force transitions."

"This change impacts our rating, as it increases our price target to $18 from $16, and with the stock currently indicated to open at around $18, TRNX shares are now trading too close to what we calculate as fair value to justify a SELL rating. We therefore upgrade TRNX shares to NEUTRAL. Despite this upgrade, we remain concerned that a revenue miss in 2014 is possible and that TRNX shares may be volatile for the remainder of the year," he added.

For an analyst ratings summary and ratings history on Tornier click here. For more ratings news on Tornier click here.

Shares of Tornier closed at $17.87 yesterday.

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