Roth resumes coverage of IRIDEX at buy, PT $13

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Roth Capital Partners resumed coverage of IRIDEX (NASDAQ:IRIX) with a “buy” rating and $13 price target after the company reported modest upside to Roth’s prior revenue targets for the third quarter.

“Further, the trends in the company’s G6 glaucoma segment were ahead of prior Roth expectations,” writes analyst Scott Henry. “We are encouraged that this can be the beginning of an increased revenue trajectory with G6 sales likely to be the main driver.”

IRIDEX sells medical laser systems designed to treat sight-threatening eye diseases, including glaucoma (front of the eye) and retinal diseases (back of the eye), including diabetic macular edema. Its products include laser consoles, delivery devices, and consumable instruments, or probes.

The company maintained 2017 guidance for G6 system sales of 350-to-400 and probe sales of 30,000-to-35,000. Non G-6 revenue also tracked ahead of prior Roth targets based on flat-to-up growth relative to year-ago time periods, Mr. Henry added.

“We remain hopeful that the company is advancing beyond the early adopter phase with the G6 platform,” he added. “After a couple downward revision cycles, we are optimistic given that [the numbers] have modestly up ticked relative to prior Roth targets.”