Notable Analyst Updates – Spectranetics, HSBC, Verizon, New Home Company, Real Page

Technology Stocks News 3

Sprectranetics (NASDAQ:SPNC) rose 10% and touched a 52-week high after the company said late Monday its trial using laser atherectomy to treat patients suffering from peripheral artery disease (PAD) had achieved statistical endpoints. Separately, Stifel Nicolas repeated its Buy recommendation on the stock and raised its price target to $30 from $24. Spectranetics, a maker of cardiovascular devices, said Monday it expects to submit a 510(k) application to the FDA within 45 days. The company said freedom from target lesion revascularization (TLR) at six months was hypothesized to be 70% in the laser atherectomy. CEO Scott Drake said the technology represents a potential $750 million market opportunity for treating PAD. Spectranetics is scheduled to release its 4Q 2013 financial results on Feb. 27. In afternoon trading, SPNC was up 10.34% to $28.16. Earlier in the session, the stock hit a 52-week high of $28.43.

London-based HSBC Holdings Plc (NYSE:HSBC) is off 1.2% at $52.38 per share in afternoon Tuesday trading following a rating downgrade at Citigroup to Neutral from Buy, Citigroup also cut its price target to $11.43 per share (685 pence) from $12.85 per share (770 pence). The rating downgrade follows Monday’s disappointing Q4 results. The banking and financial services company has a 52-week price range on shares of $50.38 – $58.71 per share.

California-based home builder New Home Company (NYSE:NWHM) is up 8% on Tuesday afternoon, hitting a new 52-week high of $13.81 per share, following new coverage at Credit Suisse. Credit Suisse initiates coverage at outperform, with a $16 per share price target. Credit Suisse noted, “Our Outperform rating is driven by our expectation for EPS growth from $0.35 in 2014 to $3.27 in 2016, coupled with its discounted valuation at just 1.15 times our 2015 estimated book value. We believe NWHMs existing California land positions (1,033 lots owned or controlled) will supply the company with land for home closings through 2016, and its key land relationships in core markets will likely lead to additional opportunities,” as reported by RedLionTrader.com. NWHC shares began trading on February 3 and are up 12% since then. The stock has a price range of $11.26 – $13.81 per share.

Rental housing software company RealPage (NASDAQ:RP) tumbled to multi-year lows Tuesday following disappointing Q4 earnings and forward-looking guidance. Those results prompted RBC Capital to cut its rating on the shares to Sector Perform from Outperform, with a reduced price target of $22 from $28 per share. RP reported Q4 non-GAAP EPS of $0.16 after the close Monday, which was less than the consensus estimate of $0.17 according to Capital IQ. The company expects to report Q1 non-GAAP EPS of $0.15 to $0.16 and between $0.65 and $0.69 for FY2014. Analysts are expecting EPS of $0.17 and $0.76, respectively. RealPage neared a test of $16 in Monday’s session. Shares hit an all-time low of $15 per share on its IPO day, August 9, 2010. The stock is moving lower on 6.1 million shares, 18 times normal volume of 339,000 average daily volume. The 52-week price range is $15.40 – $26.34.

 

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