NEW YORK (TheStreet) -- The Spectranetics Corp (SPNC - Get Report) shares are down -11.6% to $23.08 in trading on Tuesday.
The drop comes following a note released by analysts at Canaccord Genuity today that lowered price target of the medical device manufacturer's shares to $30 from $35.
The firm maintained a "buy" rating on the stock.
The decrease comes a week after the firm raised the company's price target to $35 from $32.
Warren Buffett's 10 Favorite Growth Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates SPECTRANETICS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SPECTRANETICS CORP (SPNC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share."
Must Read: IsoRay (ISR) Trips After Strong Monday Run
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- SPNC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.68, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for SPECTRANETICS CORP is currently very high, coming in at 79.69%. Regardless of SPNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SPNC's net profit margin of 2.10% is significantly lower than the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, SPECTRANETICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $5.03 million or 11.81% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: SPNC Ratings Report