Dougherty downgrades Vocera on valuation ahead of 2019 guidance
Dougherty analyst Gene Mannheimer earlier today downgraded Vocera Communications to Neutral from Buy without a price target. The stock in morning trading is down 4%, or $1.64, to $38.94. As he weighs a "serious of scenarios" for the company's fiscal 2019 guidance with the current valuation at nearly six times forward revenue, the analyst sees "more of an even" risk/reward profile for the shares. Vocera's new Smartbadge will drive incremental demand as a comprehensive clinical workflow solution, but the forecasting and timing of new product cycles "rarely come without some disruption," Mannheimer writes in a research note. As such, he believes Vocera's 2019 guidance "will err on the side of conservatism," and he steps to the sidelines in front of it.