UPDATE: Ascendiant Capital Reiterates Strong Buy Rating, Lowers PT on Solta Medical on Adjusted Estimates

In a report published Wednesday, Ascendiant Capital reiterated its Strong Buy rating on Solta Medical (NASDAQ: SLTM), but slightly lowered its price target from $3.75 to $3.50.

Ascendiant Capital noted, “Our 2013 revenue estimate remains unchanged at $183 MM. Our 2013 GAAP EPS estimate is reduced by $0.14 to ($0.15) to reflect an anticipated non-cash change reflecting a remeasurement of the contingent consideration. For 2014, our revenue estimate is $202 MM, while our GAAP EPS estimate is $0.03. We continue to believe that Solta is well positioned in the aesthetic market, and believe that its pending acquisition of Sound Surgical is a good strategic fit. We are lowering our 12-month price target from $3.75 to what we believe is a more achievable $3.50, which represents a target forward EV/EBITDAS multiple of 9.2x our 2014 estimate of $17.0 MM.”

Solta Medical closed on Tuesday at $2.45.

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