UPDATE: Stifel Nicolaus Initiates Coverage on Endologix with Buy Rating, $18 PT on Compelling Growth

In a report published Friday, Stifel Nicolaus analyst Rick Wise initiated coverage on

with a Buy rating and $18.00 price target. In the report, Stifel Nicolaus noted, “We are initiating coverage of Endologix, Inc. (ELGX) with a Buy rating and $18 target price. ELGX is the only publicly traded company solely focused on treating abdominal aortic aneurysms (AAAs) – an aortic wall weakness that, when ruptured, is the 10th-leading cause of death in Western countries. As our 22% five-year sales CAGR forecast suggests, we expect ELGX's impressive historical (2008-2012) track record of driving consistent 20%-plus revenue growth will continue for the foreseeable future. We believe this above-average growth trajectory should be sustainable, given: (1) attractive and stable AAA market dynamics; (2) ELGX sales force expansion combined with steady increases in its existing rep productivity; and (3) the company's continued emphasis on driving product and technology innovation. Our $18 12-month target price is based on a 6.6x EV/revenue multiple on our 2014 revenue estimate ($162.8 million).” Endologix closed on Thursday at $14.20.