UPDATE: Ascendiant Capital Markets Initiates Buy, $3.50 PT on Solta Medical on Attractive Recurring Revenue Model

Ascendiant Capital Markets initiated coverage on Solta Medical SLTM with a Buy rating and a price target of $3.50 in a research report published today. in the report, Ascendiant Capital stated, "We believe that Solta possesses a broad and very competitive portfolio of non-invasive aesthetic product offerings. Building on its initial success with its Thermage product for skin tightening, the Company subsequently acquired Fraxel, via its merger with Reliant Corp in 2008, Isolaz in 2010, and Liposonix last November. We believe that Management has demonstrated good discipline, acquiring products that have an established brand name, a high gross margin with a disposable component, and a good fit for its existing sales force that is focused on dermatologists and plastic surgeons. As a result, we believe that SLTM represents one of the more attractive investments in this segment." Shares of Solta Medical were trading at $2.96 at the time of posting, down 0.67% from Tuesday's market close.