Citigroup Maintains SenoRx Buy Rating on Upbeat 2010 Guidance (SENO)
2/25/2010-Citigroup maintains its Buy rating on SenoRx (NASDAQ: SENO) with a $10.00 price target as the bank is encouraged by the company's 2010 outlook.
Analyst Amit Bhalla said, "While we would have liked to see the bottom line beat driven by revenue upside rather than lower expenses, mgmt provided positive 2010 guidance with EPS of "at least" $0.14 which is above both our estimate of +$0.11 and the Street at +$0.09 and is key highlight going forward. Contura revenues of $2.9M fell short of our estimate by $0.2M with about 1,125 devices sold (vs. 1,054 in 3Q09), while EnCor biopsy revenues of $8.3M (+14% Y/Y) were $0.2M below our estimate. The Contura weakness is not a complete surprise to us given the impact of discounted competitor pricing in the market and slow market development, but we await tomorrow's call for more details. Within biopsy, capital equipment revenues of $1.7M were $0.3M above our estimate with 991 EnCor systems placed to date (78 placements in the quarter).
The bank expects the company to report 2010 EPS of $0.11, versus consensus estimates of $0.09, and the company's guidance of at least $0.14.
Write to Chip Brian at cbrian@tradethetrend.com
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