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Investing.com - Needham has raised its price target on AtriCure (NASDAQ:ATRC) (NASDAQ:ARTC) to $45.00 from $44.00 while maintaining a Buy rating following the company’s second-quarter 2025 financial results. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.11, indicating robust liquidity.
AtriCure reported second-quarter revenue, EBITDA, and EPS that exceeded consensus expectations, prompting the company to increase its 2025 guidance for revenue, adjusted EBITDA, and earnings per share. The company’s trailing twelve-month revenue reached $480 million, with a healthy gross profit margin of 74.8%.
The medical device company’s revenue growth improved to 17% in the second quarter of 2025, up from 14% in the first quarter, driven by stronger performance in Open-Ablation, Appendage Management, and Pain Management segments, alongside a smaller decline in Minimally Invasive Ablation.
On a year-over-year basis, AtriCure’s gross margin decreased by 10 basis points, while its operating margin improved by 170 basis points and its adjusted EBITDA margin increased by 460 basis points.
Needham cited increased 2026 sales estimates as the basis for its price target increase, 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 earnings, surpassing expectations with an earnings per share (EPS) of -$0.13, compared to the anticipated -$0.17. The company also reported a revenue increase to $136.1 million, exceeding forecasts of $130.17 million. This positive performance led AtriCure to raise its full-year 2025 guidance for revenue, adjusted EBITDA, and EPS. Following these results, Needham increased its price target for AtriCure to $45, maintaining a Buy rating. JMP Securities reiterated its Market Outperform rating and maintained a $60 price target, highlighting the company’s 17% year-over-year sales growth and nearly doubled adjusted EBITDA of $15.4 million. These developments reflect strong investor confidence in AtriCure’s strategic direction and financial management. The company’s recent achievements and guidance adjustments have been positively received by analysts, indicating a favorable outlook.
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