Needham Reiterates a Buy Rating on Spectranetics

By Jason Carr

In a report released today, Michael Matson from Needham reiterated a Buy rating on Spectranetics (NASDAQ: SPNC), with a price target of $32. The company’s shares opened today at $21.30.

Matson said:

“SPNC beat consensus revenue and EPS in 3Q16 and management raised guidance. Vascular Intervention sales beat our estimate while Lead Management sales met our estimate. We reiterate our Buy rating since we expect SPNC’s new Turbo-Power catheter, Stellarex peripheral and AngioSculptX coronary drug-coated balloons (DCBs) in Europe, and Bridge Occlusion Balloon combined with easier comps to drive faster revenue growth.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 6.0% and a 58.2% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on Spectranetics is Strong Buy and the average price target is $30.67, representing a 44.0% upside.

In a report released yesterday, Canaccord Genuity also reiterated a Buy rating on the stock with a $30 price target.

Based on Spectranetics’ latest earnings report from June 30, the company posted quarterly revenue of $67.75M and quarterly net profit of -$14.91M. In comparison, last year the company earned revenue of $61.66M and had a net profit of -$14.49M.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SPNC in relation to earlier this year. Most recently, in January 2016, Joseph Ruggio, a a Director at SPNC bought 23,266 shares for a total of $251,040.

The Spectranetics Corp. is a medical device company that develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. Its products are used to treat arterial blockages in the heart and legs as well as the removal of pacemaker and defibrillator leads. It has two reportable segments, which were identified on a geographic basis: U.S.Medical and International Medical. These segments offer the same products and services but operate in different geographic regions, with different distribution networks and different regulatory environments. Within U.S. Medical, the company aggregates its two business units, Vascular Intervention and Lead Management. The Vascular Intervention business line manufactures and sells a range of peripheral and cardiac laser catheters for ablation of stenosed and occluded arteries above and below the knee and within coronary arteries. The Lead Management business line includes the manufacturing of excimer laser sheaths and cardiac lead management accessories, including lead locking stylets for manual traction and aid in laser-assisted extraction of cardiac pacemaker and defibrillator leads. Spectranetics was founded by Robert Golobic, Johan Sverdrup and Richard T. Simko in 1984 and is headquartered in Colorado Springs, CO.