In a report released today, Steven Lichtman from Oppenheimer maintained a Hold rating on Endologix Inc (NASDAQ: ELGX), with a price target of $2.50. The company’s shares opened today at $1.33, close to its 52-week low of $1.08.
Lichtman observed:
“ELGX reported 3Q sales of $34.8M (-24.4% yoy), slightly above the high end of its preliminary forecast and our/consensus estimate of $34.5M/$33.0M, driven by better than expected impacts from Field Safety Notices (FSNs) and lower costs to serve, which are part of ELGX’s strategic reset announced in August. Gross margin improved 180 bps to 65.1% on cost/inventory alignment with lower volume, while operating expenses rationalization (-7% yoy excluding one-time charges) was in- line. Management implemented tiered performance compensation program following recent commercial restructuring aimed at reducing sales force attrition, its biggest deemed near term risk. Recent release of AFX2 four-year data demonstrated its clinical effectiveness and difference to STRATA. FY18 sales guidance of $150-155M was reiterated. Ovation Alto is on target for 2019 launch.”
According to TipRanks.com, Lichtman is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -4.9% and a 48.5% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Zimmer Biomet Holdings, and Motus Gi Holdings Inc.
Endologix Inc has an analyst consensus of Hold, with a price target consensus of $3.58.
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Based on Endologix Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $23.88 million. In comparison, last year the company had a GAAP net loss of $14.27 million.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELGX in relation to earlier this year.
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Endologix, Inc. engages in the research, development, manufacture, and trade of medical devices for the treatment of aortic disorders such as abdominal aortic aneurysms (AAA). Its products include AFX Endovascular AAA System, Nellix and Ovation. The company was founded in March 1992 and is headquartered in Irvine, CA.
