Intersect ENT (XENT) Reports Slight Revenue Miss; Piper Jaffray Cuts Price Target to $23
Piper Jaffray maintained an Overweight rating on Intersect ENT (NASDAQ: XENT), and cut the price target to $23.00 (from $30.00), following the company's 3Q earnings report and conference call. XENT reports revenues up 56%, slightly missing consensus of 60%.
Analyst Thomas Gunderson commented, "A slight miss in revenues in Q3 (up 56% vs. our estimate of 60%) was then followed by guidance from management that was surprisingly slower, dipping to guidance for 28% growth in Q4 (vs. consensus of 63%) and “in excess of 30%” growth in 2016 (vs. consensus of 46%). The slowdown was attributed to a slower ramp to full productivity by the most recent class of new salespeople. We expect the stock to be range bound temporarily, but then to re-start outperformance as the next several quarters demonstrate relatively strong growth, and importantly, the development of office based products advances. With a price re-set, we maintain our Overweight rating and reduce our price target from $30 to $23 reflecting the lower revenues and less favorable multiple."
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Shares of Intersect ENT closed at $21.69 yesterday.