BTIG upgraded Accuray (NASDAQ:ARAY) to “buy” from “neutral,” with a price target of $9.50. The stock closed at $3.28 on Jan. 17.
Last week, Accuray announced a compound annual growth rate revenue outlook of 8% to 12% for fiscal 2021 to 2023, driven in large part by expected Chinese revenue, writes analyst Marie Thibault.
“This is significantly higher than the company’s historical performance and the low-to-mid-single-digit growth rate that we and the Street have forecasted,” she said.
The stock reacted quickly to the outlook, spiking 30% higher, “yet after an upbeat meeting with management, we believe the stock is still significantly undervalued at just about one times next 12 months revenue estimates,” Ms. Thibault said.
Accuray develops, manufactures and sells radiation oncology systems that make cancer treatments shorter, safer and more effective.