KeyBanc Upgrades Invacare (IVC) to Buy

KeyBanc upgraded Invacare (NYSE: IVC) from Hold to Buy with a price target of $17.00. The change follows Q3 results.

Analyst Matthew Mishan said, "1) while the consent decree likely extends into 2015, we are incrementally confident it is making progress toward completion and believe the stock will move in advance of any positive announcements; 2) sales declines in N.A. HME are likely to be moderate going forward driven by easier comparisons and some stabilization in its underlying business; 3) management has become more proactive in addressing near-term challenges as evidenced by its recent restructuring plan, divestiture of Altimate Medical and improved focus on meeting customer product demands for its lifestyle business; 4) as of the end of 3Q14, it held a net cash position and its banking group continues to be supportive; and 5) we believe the ultimate value of the stock is tied to a more normalized earnings number, which we estimate to be in the range of $1.30-$1.55. Driven by a warranty accrual, sale of Altimate Medical and the decline in the euro, we are lowering our earnings estimates to a loss of $1.62 from a loss of $1.23 for 2014 and to a loss of $0.38 from a loss of $0.01 for 2015."

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

Shares of Invacare closed at $13.14 yesterday.

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