Atricure (ATRC) Receives a Buy from Needham

By Austin Angelo

In a report released today, Michael Matson from Needham reiterated a Buy rating on Atricure (ATRCResearch Report), with a price target of $39. The company’s shares closed yesterday at $27.39.

Matson observed:

“ATRC shares are down 14% over the last month, versus a 3% decline in the Russell 2000, partly due to concerns about transcatheter aortic valve replacement (TAVR) cannibalizing surgical aortic valve replacement (SAVR) due to the expected low-risk TAVR indications, in our view. While ATRC doesn’t sell SAVR devices, its Open-Heart Ablation products are used in concomitant SAVR procedures. But we believe that ATRC’s US SAVR exposure is only ~7% of sales and that while some SAVR cannibalization is likely, the impact should be limited by several factors. And given strong growth from ATRC’s Convergent procedure, AtriClip products, and Therapy products, we think its SAVR exposure will become less important over time. We view the recent weakness as a buying opportunity and reiterate our Buy rating.”

According to, Matson is a 5-star analyst with an average return of 12.2% and a 66.8% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Atricure with a $38 average price target.

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Based on Atricure’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $3.43 million. In comparison, last year the company had a GAAP net loss of $2.58 million.

Based on the recent corporate insider activity of 37 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 ATRC in relation to earlier this year. Earlier this month, Mark Collar, a Director at ATRC bought 10,000 shares for a total of $25,800.

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AtriCure, Inc. engages development, manufacture and sale of devices designed primarily for the surgical ablation of cardiac tissue, and systems for the exclusion of the left atrial appendage. Its products include radio Frequency (RF) ablation pacing and sensing, cryo, left atrial appendage management, soft tissue dissection, estech surgical instrumentation, and cart configuration. It operates through the following geographical segments: United States, Europe, Asia, Other International, and Total International. The company was founded by Michael D. Hooven on October 31, 2000 and is headquartered in West Chester, OH.