Piper resumes coverage of Bovie Medical at OW with $8 PT
Piper Jaffray resumed coverage of Bovie Medical (NYSE American:BVX) with an “overweight” rating and $8 price target after the company completed the sale of its core business. The stock finished at $6.14 on Sept. 5.
Bovie hosted a business update call on Sept. 5 to provide details on the outlook for the business following the completion of its core franchise divestiture, which netted the company about $68-million after taxes. The company intends to use proceeds to invest aggressively in its sales channel for J-Plasma in the aesthetics market.
“This is a bold move but one we believe is the correct strategic decision and we are excited to see what transpires in the coming quarters,” writes analyst Matt O’Brien.
“We are not completely certain what the financials for the business will look like on the bottom line in the coming quarters but we do anticipate revenue growth will be considerable in 2019 and 2020, and we suspect that will be the primary focus among investors going forward,” he added.