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Nxstage Medical, Inc. Message Board

  • pragueinvestor pragueinvestor Jul 24, 2009 5:43 PM Flag

    Natixis Bleichroeder Initiates Coverage with a Buy Rating and $10 target

    NOT SURE WHY YAHOO NEVER PICKED IT UPNxStage Medical

    Medical Devices
    U.S.
    July 22, 2009
    Initiating Coverage: Home Hemodialysis —
    From NxStage to Center Stage
    BUY
    Current Price
    $5.34
    Target Price
    $10.00
    Market capitalization
    $248.6 million
    Shares outstanding
    46.6 million
    12-month high/low
    $6.05/$1.90
    Reuters NXTM.O
    Bloomberg NXTM
    NASDAQ 1,916.2
    Joshua Zable
    Senior Analyst
    212-698-3147
    Ashim Anand, Ph.D.
    Analyst
    212-698-3141
    􀂄 We Are Initiating Coverage on NxStage Medical with a Buy Rating and $10 Target Price. Our
    target price is based on a 3x–4x target EV/sales multiple on our 2010 sales estimate. Our target
    multiple represents a slight premium to its peer group multiple of developing medical device
    companies, which is warranted, in our view, due to its faster underlying growth rate of both sales and
    operating margin expansion in addition to its unique competitive advantage in its industry. To fortify
    our valuation, we also ran a discounted cash flow analysis, which also yielded a similar valuation.
    􀂄 Near Term: Fundamentals and Financials Should Improve over the Next Twelve Months.
    NXTM is poised to improve fundamentally in the near term, in our view, as a result of multiple
    distribution agreements in both its Medisystems® and hemodialysis business. These distribution
    agreements should not only facilitate top-line growth but should also benefit the company on a gross
    and operating margin basis. A detailed discussion of these agreements and their corresponding
    benefits are discussed in the report to follow.

 
NXTM
19.40+0.04(+0.21%)Apr 24 4:00 PMEDT