H.C. Wainwright Reiterates Buy on Edap Tms SA (ADR) Following 4Q:14 Update

In a research report issued today, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Edap Tms SA (ADR) (NASDAQ:EDAP) with a $4.50 price target, after the company released its 2014 financial results, posting revenues of €26.8 million, compared to Ramakanth's estimate of €29.9 million, and a net loss of €512,000, compared to Ramakanth's estimate of a €2.0M loss. 

Ramakanth noted, "We adjusted our financial model to reflect 2014 results and made the following changes: 1) increased expected revenues from the HIFU division; 2) lowered expected revenues from the lithotripsy division; and 3) adjusted the number of discount periods. For 2015, we model revenues of approximately €29.1 million and estimate a net loss of €1.4 million."

Furthermore, "Management recently announced its intent to file a Direct De Novo 510(K) application following recent discussions with the US Food and Drug Administration. Though the company has not disclosed the time line, we believe the application could be filed in 2H15. According to the FDA, the average review time is 120 days. We anticipate that the FDA could make a decision on this application before the end of 2016. At present, we are not assuming any U.S.-based revenues from HIFU devices."

According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Swayampakula Ramakanth has a total average return of 16.4% and a 52.0% success rate. Ramakanth has a 45.6% average return when recommending EDAP, and is ranked #736 out of 3568 analysts.


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