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Canaccord Analysts Recommend 'Aggressively Buying' AtriCure After Sell-Off

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  • AtriCure Inc (NASDAQ: ATRC) shares have lost 19 percent in the last three months, even after hitting their 52-week high of $28.15 in August.
  • Canaccord’s Jason Mills maintained a Buy rating on the company, with a price target of $31.
  • Recent weakness in the company’s shares and continued growth potential in its target markets provide an excellent investment opportunity, Mills mentioned.

Analyst Jason Mills said that recent investor meetings with AtriCure’s CEO Mike Carrel and CFO Andy Wade highlighted the vast opportunities for the company in its target markets - concomitant AFib ablation, stand-alone A-Fib ablation, and LAA/stroke management.

The company’s management also outlined a credible strategy to increase the penetration of its underserved TAMs.

Mills believes that AtriCure’s management is capable of continuing to execute relative to its revenue growth prospects of over 15 percent in the next several years. The company‘s gross margins are also expected to expand from the current 71 percent to 75 percent over the next few years.

The revenue estimates for 2015 and 2016 have been raised from $128.2 million to $128.9 million and from $147.7 million to $150 million, respectively.

AtriCure is in a sound financial position with $60 million in cash, no debt and minimal losses expected in the near term, Mills noted, while adding that the company will not need to raise additional capital via an equity issue.

The company’s growth prospects are driven by its dominant position, limited competition in its target markets and the TigerPaw and Lariat recalls by its competitors. AtriCure is focusing its growth strategy on physician training, new product innovation and continued development of clinical evidence, Mills added.

Latest Ratings for ATRC

DateFirmActionFromTo
Apr 2019Initiates Coverage OnOverweight
Apr 2019UpgradesNeutralBuy
Oct 2018MaintainsBuyBuy

View More Analyst Ratings for ATRC
View the Latest Analyst Ratings

Posted-In: Canaccord Jason MillsAnalyst Color Reiteration Analyst Ratings

 

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