Spectranetics Receives a Buy from Canaccord Genuity

By George MacDonald

Canaccord Genuity analyst Jason Mills reiterated a Buy rating on Spectranetics (NASDAQ: SPNC) yesterday and set a price target of $41. The company’s shares opened today at $36.56, close to its 52-week high of $37.04.

Mills wrote, “We reiterate our BUY rating and remain very bullish about the stock over the long run. Given this, we would recommend adding to positions on any weakness associated with today’s CFO transition announcement, even though we understand investors’ first impulse on such news may be skepticism. Some investors with whom we spoke after the announcement lamented the lack of reference to 2015 guidance in the press release. We think the CFO’s decision was made very recently, and think this announcement and financial guidance considerations were not contemplated together”

Spectranetics has an analyst consensus of Strong Buy, with a price target consensus of $41.50.

Based on Spectranetics` latest earnings report from December 31, the company posted quarterly revenue of $62.96M and quarterly net profit of -$14.73M. In comparison, last year the company earned revenue of $41.92M and had a net profit of $883k.

According to TipRanks.com, Mills is a 4-star analyst with an average return of 4.4% and a 56.0% success rate. Mills covers the Healthcare sector, focusing on stocks such as Trivascular Technologies, Staar Surgical Company, and Edwards Lifesciences.

The Spectranetics Corpdevelops, manufactures, markets and distributes single-use medical devices. Its products are used to cross, prepare, and treat arterial blockages in the legs and heart and to remove pacemaker and defibrillator cardiac leads.