Canaccord Genuity raised its price target for CryoLife (NYSE:CRY) to $23.50 from $17.50 after the company reported third quarter results. The stock is changing hands at $17.10 on Thursday afternoon.
Analyst Jason Mills writes that CryoLife posted a significant earnings beat on solid sales growth, higher gross margins and operating expense leverage flowing through to the bottom line.
“Strong trends across the business have driven management to raise guidance the last two quarters, and heading into 2017 and beyond, we think the business is set up to drive accelerating organic revenue growth, gross margin expansion and EPS growth, namely in 2018, as we expect higher investments in important R&D initiatives in 2017,” he added.
“The On-X franchise, concomitant product pull through (namely BioGlue), coupled with recent direct sales initiatives globally and the potential for tuck-in M&A to expand the sales bag, portend upside to our current estimates on both the top and bottom lines,” Mr. Mills said.
Longer term, he said U.S. approval of PerClot estimated in 2019 and BioGlue in China in 2019 represent additional growth vectors for the company.
