UPDATE: Ascendiant Capital Downgrades Solta Medical to Buy Following Poor Execution

In a report published Friday, Ascendiant Capital analyst Keay Nakae downgraded the rating on Solta Medical

from Strong Buy to Buy, and lowered the price target from $3.50 to $2.25. In the report, Nakae noted, “We believe that Solta has now become a ‘show me' stock. While we continue to believe that the Company possesses a nice portfolio of products, which have an attractive recurring revenue component, that leave it well positioned in the aesthetic market, we believe that Management will now need to prove that it can execute the business for a couple of quarters before investors step back in. We are lowering our 12-month price target from $3.50 to $2.25, which represents a target forward EV/EBITDAS multiple of 9.8x our 2014 estimate of $17.5 MM.” Solta Medical closed on Thursday at $1.87.