UPDATE: Wunderlich Securities Upgrades Synergetics Following Coverage Transfer

In a report published Wednesday, Wunderlich Securities analyst James Terwilliger upgraded the rating on Synergetics SURG from Hold to Buy, and raised the price target from $5.50 to $5.80.

In the report, Wunderlich Securities noted, “We are transferring coverage of Synergetics (SURG) and upgrading the stock to a Buy rating from a Hold rating. We are raising our price target to $5.80 from $5.50. We are also introducing our fiscal 2014 estimates with revenue of $66 million and EPS of $0.18. Our fiscal 2014 estimates represent 8% revenue growth and 100% EPS growth compared to our fiscal 2013 revenue and EPS estimates of $61 million and $0.09. We believe that SURG has strong new product visibility as the company is currently doing a launch of the VersaVIT vitrectomy system for retinal surgery in both the U.S. and Europe. New product visibility is enhanced as revenue from the disposable VersaPACK surgical pack drives growth in fiscal 2014. We are also encouraged by SURG's strong balance sheet with no debt.”

Synergetics closed on Tuesday at $4.00.