JMP Securities Reviews Bovie Medical's Q2 Results

JMP Securities reiterated its Market Outperform rating and $5 price target on Bovie Medical Corporation BVX following 2Q16 results.

The company posted revenues of $9.3 million in the quarter vs. JMP's $8.0 million estimate with J-Plasma leading the way with sales of ~$800,000 vs. JMP's $500,000 estimate as Bovie benefited from a better balance between generators and handpiece mix.

"As anticipated, OEM grew triple digits y/y and core products saw strength as well," wrote the analysts, noting it appears that the company has identified the right J-Plasma procedural targets, added the right KOLs to the Medical Advisory Board, and has already announced two sales channel partnerships to help accelerate these results ahead - and the Hologic (HOLX, NC) deal was just expanded to include two European markets (the UK and Ireland).

The analysts believe J-Plasma is a superior technology and the company's willingness to expand into partnerships, on the right terms, should aid in more rapid uptake.