Shares of Zoll Medical (NASDAQ:ZOLL) dropped over 5 percent today as Wedbush announced they're removing them from their 'Best Ideas List,' citing no short term catalysts.
Wedbush says, "We believe ZOLL will lack the sort of positive near-term catalysts that would be required to sustain the recent run up in the stock. Q1 sales came in below expectations and management guided Q2 sales below consensus views. Our overall view on ZOLL is still very positive, as we believe the company has one of the best new product cycles and one of the most compelling growth and operating leverage stories in the med tech sector. Nevertheless, ZOLL’s financial performance will be more back-end-loaded than we had anticipated, and we think investors will now be somewhat skeptical of the company’s ability to deliver on the full-year guidance. From this point, we think the stock will be driven mainly by the quarterly financial performance - and that involves a waiting game...We have trimmed our Q2 sales number by $3.7 million, to $119.2 million (+11%), and our EPS estimate by $0.01, to $0.19 (+14%)."
Wedbush reiterates an 'Outperform' rating on Zoll Medical (ZOLL), which was trading at $41.00, down $2.59, or 5.94 percent, as of 1:43 PM EST. Wedbush has a price target of $52 on Zoll.
No comments:
Post a Comment