Brighter Distant Future for ATSI

An update has come out on ATS Medical, Inc. (ATSI), in which senior medical products analyst Gregory Aurand, CFA is restating his Hold rating on the company.  We excerpted the following details:

"The company reported in-line third quarter revenues on stronger ablation revenues but weaker mechanical valve revenues. EPS beat our estimate by a penny on lower operating expenses. Important mechanical and tissue valve approvals like the AP360 and 3F Aortic are expected by yearend or early 2008. Given key new products, we have increased our 2008 revenue estimate but have maintained our full-year per share loss of $0.12. Our target price remains at $2.00.

"However, we also expect higher launch and support costs in 2008. Given key new products, we have increased our 2008 revenue estimate but have maintained our full-year per share loss of $0.12. At our revised estimates, ATSI trades at 1.3x expected 2008 revenues, a 50% discount to the 2008 industry mean, a roughly 50% discount to the average of comparables, and a 45% discount to the industry median.

"Despite tissue valve and other market opportunities, we believe a discount is warranted until profitability is fully attained. We expect the company to reach breakeven in Q408. At roughly 1.8x 2008 revenues, a 25% industry median discount, our target price remains at $2.00. Our recommendation remains a Hold."

Read the full analyst report on ATSI.

Read the full analyst report on ATSI