Stereotaxis Issues Downward Revision Of FY Revenue Growth

Despite impressive capital order growth in 3Q, Stereotaxis STXS yesterday issued a downward revision of full-year revenue growth to the high single digits from previous guidance of revenue growth in the mid 20% range. Installation delays are the driving factor. Deutsche Bank expects the lowered near-term guidance to increase investor skepticism. With the new order flow coming in better than expected, the reduced revenue being due to delays and not cancellations and disposable growth solid. Deutsche Bank maintains its Outperform rating with a $5 target price, which is driven by DCF, implies a 3.7x '11E EV/Sales multiple, about in line with peers. Stereotaxis closed Wednesday at $4.12