UPDATE: Canaccord Maintains Buy Derma Sciences based on Solid Q3, Lowers PT
In a report published Monday, Canaccord maintained its Buy rating on Derma Sciences Inc. (NASDAQ: DSCI), but lowered its price target from $18.00 to $16.50.
Canaccord noted, "We maintain our BUY rating following solid Q3/12 results, with Y/Y revenue growth of 24% driven by a combination of outperformance in the advanced wound care, international, and traditional wound care segments. Management continues to execute on its AWC strategy and noted the recent MedEfficiency acquisition was fully integrated as of the Q3/12. Additionally, the successful completion of the end of Phase II meeting keeps DSC127 on track for enrollment initiation by YE/12. We are lowering our price target to $16.50 from $18.00 due to multiple compression of the comp group. Our price target is based on a sum-ofthe-parts valuation of $7.57 per share for DSC127 combined with $8.96 per share for the base business. Our price target assumes cash of $15.6M, debt of $0.3M and 12.9M shares outstanding."
Derma Sciences closed at $11.19 on Monday.
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