Piper sees 'significant valuation creation on the horizon' for AtriCure
Despite strong sales performance this year, shares of AtriCure are down slightly, Piper Jaffray analyst Matt O'Brien tells investors in a research note. He believes the combination of a short report and dilutive acquisition have weighed on the stock. However, looking ahead, the analyst sees "significant valuation creation on the horizon" and believes investors should own the name. The core business, led by the appendage management franchise, has "considerable runway for growth," O'Brien tells investors in a research note. Further, the key Converge data for AtriCure's hybrid approach to treating persistent and long-standing persistent patients expected in mid-2020 should have a favorable outcome, adds the analyst. He believes revenue growth at AtriCure should accelerate to the mid-teens beginning in 2021 and stay at those levels for "many years thereafter." O'Brien keeps an Overweight rating on the shares with a $40 price target.