UPDATE: Piper Jaffray Lowers PT on NxStage Medical despite Solid Q4 Results
In a report published Friday, Piper Jaffray reiterated its Overweight rating on NxStage Medical (NASDAQ: NXTM), but lowered its price target from $18.00 to $16.00.
Piper Jaffray noted, “We remain buyers of NXTM following solid Q4 results and management's belief that top-line growth can accelerate to 15%+ in 2014 from ~11% annual growth in 2012 and 2013. NXTM has generated solid returns in its direct-to-patient marketing efforts, which drove the decision to increase its investment in direct-to-patient marketing in FY13. NXTM modified its distribution relationship with Kimal in the U.K., shifting to a direct sales model, while Kimal will still handle some logistic duties. We believe this should help strengthen customer relationships and the decision to go direct was attributed to NXTM's size and infrastructure. We continue to believe the company's strategic initiatives are coming together, which will lead to greater use of home dialysis over the long-term.”
NxStage Medical closed on Thursday at $11.23.
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