Needham Believes Spectranetics (NASDAQ: SPNC) Still Has Room to Grow

By Austin Angelo

In a report released today, Michael Matson from Needham reiterated a Buy rating on Spectranetics (NASDAQ: SPNC), with a price target of $38.50. The company’s shares closed yesterday at $30.40, close to its 52-week high of $31.

Matson wrote:

“This morning Philips announced that it has entered into a definitive merger agreement with SPNC at $38.50 per share of cash. Philips previously acquired Volcano in early 2015 and we believe that SPNC’s product portfolio complements the Volcano vascular imaging (including intravascular ultrasound or IVUS and fractional flow reserve or FFR) and therapeutic product portfolio. We believe that the only area of direct overlap is atherectomy due to Volcano’s Phoenix atherectomy device but we believe its market share is very low and think regulatory issues are unlikely.”

According to TipRanks.com, Matson is a top 100 analyst with an average return of 14.1% and a 68.4% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Spectranetics has an analyst consensus of Strong Buy, with a price target consensus of $33.70.

Based on Spectranetics’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $69.68 million and GAAP net loss of $18.52 million. In comparison, last year the company earned revenue of $62.88 million and had a GAAP net loss of $17.29 million.

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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.