Needham Sticks to Their Hold Rating for Mazor Robotics

By Jason Carr

In a report released today, Michael Matson from Needham maintained a Hold rating on Mazor Robotics (NASDAQ: MZOR). The company’s shares opened today at $58.06.

Matson observed:

“MZOR beat consensus revenue and EPS though we note it had preannounced 27 system orders and revenue of ~$19M on 1/8/18. There were 24 systems delivered in 4Q17, which missed our post-preannouncement estimate of 28 but was up from 19 systems in 3Q17 and we note that the installed base increased by 16 to 188. This was the first full quarter MDT has had responsibility for the distribution of the Mazor X system. MZOR’s gross margin was much lower than expected but more than offset by lower operating expenses which resulted in an operating margin that was higher than expected. Management indicated that MZOR’s revenue growth is likely to slow significantly in 2018 given pricing headwinds under the MDT agreement. Given this, and MZOR’s 2018E EV/sales multiple of 17.6x, we maintain our Hold rating.”

According to, Matson is a 5-star analyst with an average return of 8.2% and a 56.7% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Mazor Robotics has an analyst consensus of Moderate Sell, with a price target consensus of $36.

Based on Mazor Robotics’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $17.75 million and GAAP net loss of $3.77 million. In comparison, last year the company earned revenue of $14.03 million and had a GAAP net loss of $4.26 million.

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Mazor Robotics Ltd. is a medical device company, which engages in the development and marketing of innovative surgical guidance systems and complementary products. It specializes in robotic, computerized and imaging-based systems, primarily in the field of spine surgery.