CryoLife Pre-Releases Low 1Q20 Revenues, Pulls FY20 Guidance

Management also withdrew its 2020 financial guidance citing Covid-19 uncertainty. Additionally, CRY preemptively drew down its $30M revolver and ended 1Q20 with $60M in cash.

CRY is managing its operating expenses, including implementing a hiring freeze, limiting most discretionary spending and capital spending, and deferring longer-term R&D and clinical research programs.

“While CRY’s revenue growth is likely to suffer from the COVID-19 pandemic, we think its mix of more urgent procedures and strong product cycle may allow it to fare better than companies with mostly elective procedure exposure” wrote Needham analyst Mike Matson following the announcement. He estimates the company has about $245M of debt.

“We have lowered our price target to $29 from $38 due to peer multiple compression and maintained our Buy rating” the analyst continued. With shares trading down close to 40% year-to-date, his new price target still suggests upside potential of over 75% from current levels.

Indeed, the stock boasts a confident Strong Buy consensus from the Street. TipRanks shows that the average analyst price target stands at $26.50. (See CRY stock analysis on TipRanks) “CRY will be “like a coiled spring once things normalize” added Oppenheimer’s Suraj Kalia on April 1.

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