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."

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

Shares of Intersect ENT closed at $21.69 yesterday.

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