In a report released today, Michael Matson from Needham reiterated a Buy rating on SurModics (SRDX), with a price target of $74. The company’s shares closed yesterday at $58.24.
Matson noted:
“SRDX has embarked upon its “whole-product solutions” strategy and has a number of medical devices in development or commercialization that it intends to sell through distribution partners. The potential revenue from these products varies widely; to use a baseball analogy, we think these product opportunities range from potential “singles” (e.g. its 510(k) products) to potential “home runs” (e.g. its drug-coated balloons or DCBs). Given the multiple moving parts of the SRDX story, we thought it would be worthwhile to conduct a “sum-of-the-parts” (SOTP) analysis. Our SOTP analysis implies that SRDX’s 2020E enterprise value should be ~$1.0B, or ~ $74 per SRDX share. Given this, we raise our price target to $74 from $69 and reiterate our Buy rating. Please contact us or your Needham sales person for our SRDX SOTP spreadsheet.”
According to TipRanks.com, Matson is a top 100 analyst with an average return of 14.1% and a 70.1% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Currently, the analyst consensus on SurModics is a Moderate Buy with an average price target of $74.
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Based on SurModics’ latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $1.31 million. In comparison, last year the company had a GAAP net loss of $1.56 million.
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SurModics, Inc. engages in the provision of medical device and in vitro diagnostic technologies to the healthcare industry. It operates through the Medical Device and In Vitro Diagnostics segments.
