In a report released today, Suraj Kalia from Northland Securities maintained a Hold rating on Tactile Systems Technology (TCMD), with a price target of $50. The company’s shares closed yesterday at $55.59.
Kalia observed:
“We also note that the 30% y/y growth number is misleading, especially since ASC 842 allows for an accounting change in rev recognition for leases beginning from Q1-19. Revs by payer = 69% commercial, 20% VA; 11% Medicare, compared to 69.5%, 23% and 7.5%, respectively, in Q1-18. Numerically, this would imply revs of $25.9M, $7.52M, $4.14M in Q1-18, respectively. Stated yet in another way, in Q1-19, as reported commercial revs were up 39% y/y; VA revs were up 21.3% y/y; and Medicare revs were up 100% y/y.”
According to TipRanks.com, Kalia is a 5-star analyst with an average return of 11.8% and a 60.5% success rate. Kalia covers the Healthcare sector, focusing on stocks such as Varex Imaging Corporation, Strata Skin Sciences Inc, and Obalon Therapeutics Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Tactile Systems Technology with a $65 average price target.
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Based on Tactile Systems Technology’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $1.47 million. In comparison, last year the company had a GAAP net loss of $50K.
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Tactile Systems Technology, Inc. is a medical technology company, which develops and provides innovative medical devices for the treatment of chronic diseases at home. The company focus on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising healthcare expenditures. It possesses a platform to deliver at-home healthcare solutions throughout the United States. The company was founded on January 30, 1995 and is headquartered in Minneapolis, MN.
