Needham maintains Buy on AtriCure stock, $51 target

Published 27/03/2025, 12:10
Needham maintains Buy on AtriCure stock, $51 target

On Thursday, Needham reaffirmed its positive stance on AtriCure Inc. (NASDAQ:ATRC) shares, maintaining a Buy rating and a price target of $51.00. The endorsement followed AtriCure’s investor day held at the company’s headquarters in Mason, Ohio on March 26, 2025. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $45 to $66, suggesting significant upside potential from the current price of $33.62. During the event, AtriCure showcased its existing products, development pipeline, and set forth its long-term financial goals. Additionally, the gathering featured presentations by key opinion leaders on prophylactic treatments and the company’s Convergent procedure. The company, currently valued at $1.64 billion, has demonstrated strong revenue growth of 16.55% over the last twelve months, maintaining a healthy gross profit margin of 74.69%.

AtriCure’s management team presented an ambitious sales target of $750 million by the year 2028, with an anticipated EBITDA margin of approximately 14%. Although this revenue goal fell short of the consensus estimate, which was based on a forecast from a single analyst, the projected compound annual growth rate (CAGR) from the actual 2024 to the estimated 2028 aligns with the low-teens growth rate anticipated by Needham. This target builds upon the company’s impressive five-year revenue CAGR of 15%.

The company’s progress in product development and clinical trials has been significant, expanding its total addressable market (TAM) from $1 billion post-IPO to the current $5 billion. Moreover, management anticipates that AtriCure’s TAM will surpass $10 billion in the longer term, signaling confidence in the company’s growth trajectory and market expansion.

AtriCure’s investor day provided an opportunity for the company to highlight the strengths of its product portfolio and strategic plans for future growth. The presentations by key opinion leaders underscored the potential of AtriCure’s treatments and procedures in the medical field. With a robust pipeline and clear financial targets, AtriCure appears to be positioning itself for sustained growth in the coming years. InvestingPro analysis indicates the company maintains a GOOD overall financial health score, with particularly strong metrics in price momentum and growth potential. Discover more detailed insights and 6 additional ProTips about AtriCure through InvestingPro’s comprehensive research reports.

In other recent news, AtriCure Inc. reported its fourth-quarter 2024 revenue at $124.3 million, marking a 16.6% year-over-year growth, surpassing its guidance range and analyst expectations. The company’s U.S. revenue increased by 14.4%, while international revenue saw a 28.1% rise, both exceeding consensus estimates. AtriCure has maintained its 2025 sales guidance, projecting revenues between $517 million and $527 million, with an adjusted EBITDA target of $42 million to $44 million. BTIG raised AtriCure’s stock price target to $58, maintaining a Buy rating, citing the company’s long-term financial goals and market opportunities. JMP Securities also reaffirmed a Market Outperform rating with a $60 price target, highlighting potential growth opportunities and AtriCure’s diverse portfolio. Needham maintained its Buy rating and $51 price target, noting that AtriCure’s fourth-quarter earnings surpassed market expectations. Analysts anticipate the upcoming investor day will provide further insights into AtriCure’s strategic plans and growth prospects.

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