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On Thursday, Oppenheimer analyst Suraj Kalia maintained an Outperform rating on AtriCure Inc. (NASDAQ: NASDAQ:ATRC), with a steady price target of $45.00. According to InvestingPro data, analyst targets range from $45 to $66, suggesting significant upside potential from the current price of $33.62. The reaffirmation follows AtriCure’s recent investor day event at its Mason, Ohio headquarters, where the company presented its clinical and product pipelines, along with its long-term financial goals.
During the event, AtriCure highlighted several key points that could potentially drive the company’s growth in the future. The company, which currently generates $465.3 million in annual revenue with an impressive 74.7% gross margin, showcased LeAAPS and BoxX-NO AF as significant clinical growth drivers. The company also discussed the current issues with its Pulsed Field Ablation (PFA) technology, including problems related to hemolysis and higher rates of ablation failure or the need for redo procedures. Despite these challenges, PFA is anticipated to shift from a headwind to a tailwind for the company, although the timing for this change remains uncertain.
AtriCure’s long-term financial projections suggest a required compound annual growth rate (CAGR) of approximately 14% to achieve its top-line targets, which appears achievable given their historical 5-year revenue CAGR of 15%. InvestingPro analysis reveals several key insights about the company’s financial health, with 6 additional ProTips available to subscribers. The specifics of how much gross margin (GM) improvement and operational expenditure (OpEx) leverage are needed to reach the adjusted EBITDA margin goals were not detailed.
The management team at AtriCure also commented on the competitive landscape, particularly regarding its AtriClip product. They expressed a welcoming attitude towards competition in this space, viewing it as an opportunity to increase market awareness and support market growth. For a comprehensive analysis of AtriCure’s competitive position and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro.
In other recent news, AtriCure Inc. announced its fourth-quarter 2024 revenue of $124.3 million, reflecting a 16.6% year-over-year growth, surpassing its guidance range of $118 million to $121 million. The company’s U.S. revenue reached $101.6 million, while international revenue increased by 28.1% year-over-year to $22.7 million, both exceeding consensus estimates. AtriCure has maintained its 2025 sales guidance, projecting revenues between $517 million and $527 million, suggesting an 11-13% year-over-year increase. The company also revised its adjusted EBITDA expectations for the full year to $42 million to $44 million, surpassing the consensus estimate of $37.9 million.
BTIG raised AtriCure’s stock price target to $58 from $57, maintaining a Buy rating, following the Investor Day event where AtriCure outlined its long-term financial goals. The company aims for $750 million in annual revenue by 2028, with an adjusted EBITDA margin of 14%, and expects to reach $1 billion in revenue by 2030 with a margin exceeding 20%. Needham also reaffirmed its Buy rating with a $51 price target, noting AtriCure’s Q4 revenue met forecasts, and its EBITDA and EPS exceeded expectations. The firm’s revenue growth guidance for 2025 remains in the low teens, with potential for higher growth.
AtriCure’s management highlighted significant market expansion opportunities, particularly in the prophylactic setting, and introduced new product catalysts and upcoming clinical trial readouts. The company’s strategic plans and growth prospects were further emphasized during product demonstrations and discussions with engineers and clinical support representatives. Both BTIG and Needham expressed confidence in AtriCure’s performance, with BTIG noting potential top-line beats in 2025 driven by new product launches and market expansions.
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