Canaccord Slashes Price Target For IMRIS Inc Following Disappointing 4Q Results


Canaccord Genuity analyst Jason Mills weighed in with a few insights on IMRIS Inc (NASDAQ:IMRS), after the company reported fourth-quarter earnings that missed expectations, sending shares plunging 11 percent. The analyst reduced the price target to $1.25 (from $1.50), while maintaining his Buy rating.

Mills noted, “The lumpiness inherent in the company model reared its ugly head for the second consecutive quarter, providing a reminder that the lack of predictability in financial performance and systems bookings will be a factor in the IMRS story for a little while longer. New order bookings – the key metric to gauge the performance of IMRS, in our view – fell on a sequential basis to $4.7M and came in well below our $13.6M estimate.”

Furhtermore, “Despite the unpredictable and lumpy selling cycle for the VISIUS system, we continue to hear about the significant clinical utility of the innovative technology from our research. Additionally, with the potential for an expanded product offering over the next 18 months (SYMBIS robotics, MRgRT), coupled with the recently announced collaboration with Siemens Healthcare, we continue to believe there are decent prospects on the bookings side over the long term as new products gain traction.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Mills has a total average return of 4.3% and a 52.8% success rate. Mills has a -26.6% average return when recommending IMRS, and is ranked #1011 out of 3505 analysts.

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