UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Endologix Following Stronger 3Q13 Estimates

In a report published Thursday, BMO Capital Markets analyst Joanne K. Wuensch reiterated an Outperform rating on Endologix ELGX, and raised the price target from $18.00 to $20.00. In the report, BMO Capital Markets noted, “ELGX reported 3Q13 estimates that were better than expected, providing an update on the product pipeline. 3Q13 revenue of $33.3 million (up 25%) was ahead of the consensus's $32.5 million estimate. In the US, revenue was $26.5 million (up 24% y/y) seemingly moving through the normal summer slowdown, driven by the continued adoption of its AFX system and enhanced sales force productivity. OUS sales were $6.8 million (up 26%), where the normal summer seasonal patterns were evident, despite strong procedural growth, and a continued direct sales transition in Europe. EPS were a loss of $0.02, better than the consensus's loss of $0.05. On guidance: the revenue range was narrowed to $131-$133 million (up 24%-25%) from $128-$134 million (versus consensus's $132.8 million), and non-GAAP EPS to a loss of $0.14-$0.18 from a loss of $0.18-$0.22 (and consensus's loss of $0.18).” Endologix closed on Wednesday at $17.07.