Roth Capital Reaffirms Buy On Natus Medical Following Management’s Update Presentation


In a research note published today, Roth Capital analyst Chris Lewis reiterated a Buy rating on Natus Medical (NASDAQ:BABY) with a $33 price target, following Natus management’s update presentation to Roth Capital’s sales force.

Lewis wrote, “We come away incrementally confident the company is tracking inline with its 2H14 expectations. We believe sustainable organic revenue growth paired with continued operating efficiencies could lead to organic annual earnings growth of 20% over the coming years.” Lewis continued, “We continue to be bullish on BABY and we believe the company is tracking at least inline with its 2H14 guidance. We look for continued execution, outperformance versus expectations, and a shift in valuation to 2015 estimates to drive gradual yet consistent stock upside over the next 12 months. Management noted capital equipment end markets continue to be positive in the U.S. and stable in international markets. Finally, we are encouraged that the company’s backlog exiting 2Q will improve forward visibility and de-risk vulnerability to intermittent capital equipment choppiness/seasonality.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Lewis has a total average return of -7.6% and a 42.9% success rate. Lewis has a 21.5% average return when recommending BABY, and is ranked #3162 out of 3289 analysts.

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