Benchmark Company Reiterates Buy Rating, $7 PT on Synergetics USA

In a report published Wednesday, Benchmark Company reiterated its Buy rating and $7.00 price target on Synergetics USA

. Benchmark Company noted, “We continue to be optimistic that by F2H13, Synergetics can leverage VersaVIT's summer-2012 FDA and CE Mark regulatory clearances to reinvigorate high-margin Ophthalmic sales growth. We are encouraged by Management's characterization of multiple VersaVIT evaluations occurring currently, with good market appetite for unit placements. Under such a model, customers would amortize VersaVIT's approximately $30,000 price over the cost of procedure disposables, typically in two-year agreement. This placement model can establish a nice recurring revenue stream but takes time to expand to significant scale. We anticipate VersaVIT may become a significant and reportable revenue item by the end of F2013, or F2014 at the latest.” Synergetics USA closed on Tuesday at $4.44.