Equity Research Alert: Novadaq Technologies, Inc. (NVDQ) Research Update Released
Visit: Novadaq Technologies, Inc.
New York, NY - February 22, 2013 (www.investorideas.com newswire) Taglich Brothers released an updated research report on Novadaq Technologies Inc. (NVDQ) and reiterated a Buy rating with the 12-month price target lowered to $11.60 per share from $13.25 due to reduced sector and stock valuations. The report noted the following key investment considerations:
- Reconstructive, cardiac and urological surgery markets have been penetrated to an extent that has made Novadaq cash flow positive. Novadaq aims to commercialize, on its own, the PINPOINT endoscopic imaging systems for minimally invasive surgeries.
- Novadaq will burn cash through mid-2013 due to heavy spending on PINPOINT development and commercialization. But fortified with $37 million in proceeds from a common stock offering, Novadaq is well prepared for expanded product development and penetration of additional large markets.
- In 4Q12 (results released Feb. 7, 2013) Novadaq broke even (before warrant revaluations) on revenue of $6.8 million. We projected a ($0.02) per share loss on revenue of $6.5 million. In the year-earlier quarter, the company lost ($0.03) a share (before warrant revaluations) on revenue of $5 million.
- Revenue gains stemming from increases in SPY installations and utilization rates should enable Novadaq to narrow losses and achieve positive cash flow in 2013.
- For 2013 we project a loss of ($0.04) per share on revenue of $34.2 million. We project 2014 EPS of $0.16 per share on revenue of $46.8 million. Our estimates exclude warrant valuation adjustments.
The full report can be viewed at http://www.taglichbrothers.com/equityuniverse/companies/novadaqtech/novadaqtech.aspx.
Novadaq has commercialized SPY Imaging, a patented visualization technology that enables surgeons to monitor circulation and tissue perfusion intraoperatively, facilitating surgical mapping and revisions during major procedures. The technology can also visualize lymphatic systems, potentially detecting the extent of lymph node involvement in cancer cases, and differentiate between normal and cancerous tissue on the margins of a surgical resection.
Recent studies have demonstrated improvements in surgical outcomes, reductions in post-operative complications and cost savings stemming from the adoption of fluorescence angiography. These results should underlie wide acceptance of Novadaq's SPY systems, which are adaptable for use in a wide variety of major surgeries. SPY systems have so far been used widely in post-mastectomy breast reconstruction and coronary artery bypass graft procedures. Variants of SPY have been developed for use in urological, gastrointestinal, and organ transplant procedures. The technology has also been refined by Novadaq for use in a number of open, minimally invasive, and robotic surgical procedures.
Novadaq's growth strategy is based in part on strategic partnerships, the first of which, with Intuitive Surgical, could potentially boost revenue substantially in 2010.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statement is the opinion of Taglich Brothers, Inc. and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in this report are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. As of the date of this report, we, our affiliates, any officer, director or stockholder, or any member of their families do not have a position in the stock of the company mentioned in this report. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned in this report and was not a manager or co-manager of any offering for the company with in the last three years. The company prepaid for the first three months of distribution a total of $5,250 (USD) in March 2012, and will pay beginning August 2012 a monthly monetary fee of $1,750 (USD) to Taglich Brothers, Inc. for the creation and dissemination of research reports.
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