BofA warns Fed risks policy mistake with early rate cuts
On Thursday, Piper Sandler expressed continued confidence in AtriCure Inc. (NASDAQ: NASDAQ:ATRC), maintaining an Overweight rating and a $50.00 price target for the company’s stock. The medical device maker, currently valued at $1.64 billion, has seen its shares rise over 11% in the past year despite volatile trading conditions. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts setting targets ranging from $45 to $66. The affirmation follows AtriCure’s recent analyst and investor meeting where management confirmed its guidance for the year and provided long-term revenue projections through the end of the decade.
During the meeting, AtriCure’s management team reiterated their guidance for the year and introduced long-term revenue targets. These goals are viewed as realistic by Piper Sandler, despite investor expectations for greater near-term revenue growth. The company has demonstrated solid performance with 16.55% revenue growth in the last twelve months, though InvestingPro analysis indicates that 4 analysts have recently revised their earnings expectations downward. The conservative estimates acknowledged by AtriCure’s leadership are seen as a cautious move amid current market challenges and rising competition.
AtriCure’s ongoing clinical trials, which are poised to potentially transform cardiac surgery practices, along with their innovative devices for pain management and pulmonary vein isolation (PFA), are expected to drive consistent double-digit sales growth into the next decade. The company’s commitment to these areas of development is a key factor in Piper Sandler’s positive outlook.
The focus on enhanced profitability was also a highlight of the meeting, with improvements in this area beginning to emerge. Piper Sandler believes that AtriCure’s efforts to increase profitability will be well-received by the investment community.
Piper Sandler concluded by emphasizing that AtriCure’s potential is not fully recognized by the market, and reiterated the Overweight rating as a signal of their belief in the company’s continued success and undervalued position.
In other recent news, AtriCure Inc. reported that its fourth-quarter 2024 revenue aligned with prior forecasts, while its EBITDA and earnings per share exceeded market expectations. The company reaffirmed its revenue outlook for 2025 and increased its adjusted EBITDA guidance, introducing EPS guidance that aligns with consensus estimates. AtriCure’s management has set an ambitious sales target of $750 million by 2028, with an expected EBITDA margin of approximately 14%. Analysts from BTIG have raised their price target for AtriCure to $58, maintaining a Buy rating, while Needham also reaffirmed a Buy rating with a $51 target. Oppenheimer continues to maintain an Outperform rating with a $45 target.
AtriCure’s investor day highlighted its product pipeline and long-term financial goals, with discussions on clinical trials such as LeAAPS and BoxX-NO AF expected to drive growth. The company has projected a compound annual growth rate of about 12.7% from 2024 to 2028, with an acceleration to around 15.5% from 2028 to 2030. Despite some challenges with its Pulsed Field Ablation technology, the company anticipates it will become a growth driver. AtriCure’s total addressable market has expanded significantly, and management expects it to exceed $10 billion in the longer term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.