Roth Capital Reiterates Buy On Natus Medical; Raises PT To $36


In a research report issued to investors today, Roth Capital analyst Chris Lewis reiterated a Buy rating on Natus Medical (NASDAQ:BABY) and slightly raised his price target to $36 (from $33), after the company delivered a solid quarter, highlighted by better-than-expected revenue
growth of 5% (U.S. up 11%).

Lewis noted, “Management provided 4Q guidance above expectations and raised its full-year outlook. We remain confident Natus can sustain organic revenue growth in the low single digits with potential for upside and execute on its long-term operating margin goals, which should provide 20% earnings growth in 2015 and upside versus current consensus.”

The analyst explained his new price target, “We have raised our target to reflect our increased confidence BABY can sustain organic revenue growth in the low-to-mid single digits and execute on its long-term operating margin goals, perhaps sooner than expected. Our upwardly-revised TP assumes a 12-month pro forma cash balance of $3 per share and implies 24x our likely conservative 2015 EPS projection of $1.38.”

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 -6.8% and a 37.8% success rate. Lewis has a 24.6% average return when recommending BABY, and is ranked #3161 out of 3337 analysts.

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