Analysts Offer Insights on Healthcare Companies: Endologix Inc (NASDAQ: ELGX) and CRH Medical Corporation (NYSEArca: CRHM)

By Austin Angelo

Analysts have been eager to weigh in on the Healthcare sector with new ratings on Endologix Inc (NASDAQ: ELGX) and CRH Medical Corporation (NYSEArca: CRHM).

Endologix Inc (NASDAQ: ELGX)

In a report released today, Jason Mills from Canaccord Genuity reiterated a Hold rating on Endologix Inc (NASDAQ: ELGX), with a price target of $5. The company’s shares opened today at $4.80, close to its 52-week low of $4.21.

According to TipRanks.com, Mills is a 5-star analyst with an average return of 12.0% and a 68.7% success rate. Mills covers the Healthcare sector, focusing on stocks such as Integer Holdings Corporation, Tactile Systems Technology, and Trivascular Technologies.

Currently, the analyst consensus on Endologix Inc is Hold and the average price target is $6.75, representing a 40.6% upside.

In a report released today, Stephens also downgraded the stock to Hold with a $6 price target.
CRH Medical Corporation (NYSEArca: CRHM)

Canaccord Genuity analyst Richard Close reiterated a Buy rating on CRH Medical Corporation (NYSEArca: CRHM) today and set a price target of $8. The company’s shares opened today at $5.65.

Close observed:

“Date and time of first dissemination: May 18, 2017, 12:09 ET Date and time of production: May 18, 2017, 12:09 ET Target Price / Valuation Methodology: CRH Medical Corporation – CRHM Price target of $8 is based on 15x 2018E adj-EBITDA to common, a premium to its peer group of outsourced health care services providers. We believe that is justified given the faster growth and higher margin profile of CRHM relative to peers. Risks to achieving Target Price / Valuation: CRH Medical Corporation – CRHM Negative reimbursement rate cuts or other regulatory changes could adversely impact market for anesthesia services. Should the level of acquisitions not meet our expectations, or should acquisitions not integrate and contribute to profitability as expected, CRH financial results could be below our expectations. Margin compression is possible as M&A activity ramps up.”

According to TipRanks.com, Close is a 5-star analyst with an average return of 15.1% and a 62.8% success rate. Close covers the Technology sector, focusing on stocks such as Castlight Health, Evolent Health, and Athenahealth.

CRH Medical Corporation has an analyst consensus of Moderate Buy, with a price target consensus of $9.

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