Roth ups LeMaitre Vascular to buy; PT cut to $34

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Roth Capital Partners upgraded LeMaitre Vascular (NASDAQ:LMAT) to “buy” from “neutral” but reduced its price target to $34 from $39 after the company reported in-line EPS for the third quarter of 2018, despite a $1.8-million revenue shortfall, and took down its 2018 guidance. The stock closed at $28.53 on Oct. 5.

The company develops, manufactures and markets medical devices and implants used primarily in the field of vascular surgery.

“LeMaitre is facing multiple near-term headwinds,” analyst Dr. David Solomon writes, adding that the headwinds motivated both a revision in 2018 guidance and a tabling of the company’s mantra of "10% revenue growth and 20% operating income growth," which could signal that headwinds may extend into 2019.

“Beyond a potentially challenging early-2019, we believe that headwinds could reverse and we forecast top-line growth acceleration in outer years, driven by sales-force expansion, especially in Asia; XenoSure approvals in new territories; and new acquisitions,” Dr. Solomon said.

Stephen Kilmer