Vocera optics worse than reality, selloff an opportunity, says Piper Jaffray
Vocera Communications reported Q4 results and 2019 guidance that are in "stark contrast" to the company's commentary on the business, Piper Jaffray analyst Sean Wieland tells investors in a post-earnings research note titled "The Optics are Worse than the Reality." The numbers show deceleration with slowing operating leverage, yet management remains very bullish on the outlook, says the analyst. He believes that while a "number of factors are aligning to disrupt" Vocera's first half of 2019, including a badge upgrade cycle, customer-led implementation cycles, and the government shutdown, a recovery in the second half "is within sight." The "best way to make money in Health IT is to buy good companies whose stock gaps down, and this is one of those opportunities," proclaims Wieland. He trimmed his price target for the shares to $40 from $41 and reiterates an Overweight rating on Vocera. The stock in premarket trading is down 23%, or $8.99, to $30.70.