FeelPic
Needham said Tuesday that it was maintaining its buy rating on AtriCure (NASDAQ:ATRC), despite Medtronic’s (NYSE:MDT) limited US launch of a competing product to AtriCure’s AtriClip.
Needham said in a note that while Medtronic’s Penditure Left Atrial Appendage Exclusion System could generate surgeon interest, AtriCure’s AtriClip has a “long and successful track record, with over 400,000 sold to date” and was available in multiple versions. It added that it believes only around 50% of the market has been penetrated.
The investment bank noted that US sales of AtriClip accounted for approximately 34% of the company’s total sales. As a result, Penditure’s release could create an overhang for AtriCure shares.
Needham added that it was maintaining its buy rating until it learns more about Penditure. The stock has a price target of $49.