AtriCure stock price target raised to $45 from $44 at Needham

Investing.com - Needham raised its price target on AtriCure Inc. (NASDAQ:ATRC) to $45.00 from $44.00 on Wednesday, while maintaining a Buy rating on the medical device company’s stock. According to InvestingPro data, AtriCure maintains a "GOOD" overall financial health score, with analyst targets ranging from $40 to $60.

The price target increase follows AtriCure’s second-quarter 2025 results, which exceeded consensus expectations for revenue, EBITDA, and earnings per share. The company also raised its full-year 2025 guidance for revenue, adjusted EBITDA, and EPS. InvestingPro analysis shows the company maintaining a strong gross profit margin of 74.8%, though it’s currently not profitable on a trailing twelve-month basis.

AtriCure’s revenue growth accelerated to 17% in the second quarter of 2025, up from 14% in the first quarter. This improvement was driven by stronger performance in Open-Ablation, Appendage Management, and Pain Management segments, alongside a smaller decline in Minimally Invasive Ablation. The company has demonstrated consistent growth, with a five-year revenue CAGR of 15%.

On a year-over-year basis, AtriCure’s gross margin decreased slightly by 10 basis points. However, its operating margin improved by 170 basis points, and its adjusted EBITDA margin expanded significantly by 460 basis points.

Needham cited increased 2026 sales estimates as the basis for the price target adjustment, while noting that AtriCure’s current revenue guidance appears conservative with potential upside from multiple new product launches.

In other recent news, AtriCure Inc. reported its second-quarter 2025 financial results, showcasing a strong performance that exceeded analyst expectations. The company achieved a 17% year-over-year growth in sales, with revenue reaching $136.1 million, surpassing the forecasted $130.17 million. Additionally, AtriCure’s adjusted EBITDA nearly doubled to $15.4 million, significantly beating the Street’s expectation of $10 million. The earnings per share (EPS) also outperformed projections, coming in at -$0.13 compared to the anticipated -$0.17. JMP Securities responded to these results by reiterating its Market Outperform rating and maintaining a price target of $60.00 for AtriCure. This positive financial performance reflects investor confidence in the company’s strategic direction and financial management. The developments highlight AtriCure’s ability to deliver strong results amidst market expectations. These recent updates provide valuable insights for investors monitoring the company’s progress.

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