In a report released yesterday, Sean Lavin from BTIG maintained a Buy rating on Endologix Inc (NASDAQ: ELGX), with a price target of $4. The company’s shares closed yesterday at $2.53, close to its 52-week low of $2.35.
“PT from $7 to $4 While we were out sick, ELGX announced a drastic reduction in 2018 rev guidance, meaningful cuts in salesforce, and delayed clinical timelines. While Q2 was in line and an amended credit facility was announced, the rest of the earnings call was completely negative. We feel ELGX is a lot like the Cleveland Browns – full potential for the future, but if it can go wrong, it does go wrong. Given ELGX’s struggles, we understand the urge to hit the reset button, but we don’t know if the new approach of focusing on high-volume centers – and going up against entrenched competitors – will spell quick success. We expect to learn more at the investor event on October 2 nd . We do not really understand the point of maintaining any sales. It makes some sense to keep ELGX’s name out there, but frankly producing rev that will involve large losses doesn’t make much sense to us.”
According to TipRanks.com, Lavin is a 5-star analyst with an average return of 14.0% and a 61.9% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.
Currently, the analyst consensus on Endologix Inc is a Hold with an average price target of $4.25.
The company has a one-year high of $6.72 and a one-year low of $2.35. Currently, Endologix Inc has an average volume of 561.7K.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELGX in relation to earlier this year.
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Endologix, Inc. engages in the research, development, manufacture, and trade of medical devices for the treatment of aortic disorders such as abdominal aortic aneurysms (AAA). Its products include AFX Endovascular AAA System, Nellix and Ovation. The company was founded in March 1992 and is headquartered in Irvine, CA.