2008-09-19 12:10:01 -
- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Tom Park, who Vital Images, Inc. (Nasdaq: VTAL) and Accuray (Nasdaq: ARAY).
A synopsis of today's Analyst Interview is presented below. The full article can be read at at.zacks.com/?id=2678.
Can we start by talking about companies you've been working on recently?
What's the latest company you've issued a report on?
Vital Images, Inc. (Nasdaq: VTAL) develops medical software for use primarily in clinical diagnosis, disease screening and therapy planning. The company's software applies proprietary computer graphics and image processing technologies to a wide variety of data supplied by computed tomography (CT), magnetic resonance (MR), and positron emission tomography (PET) scanners.
What was the verdict?
Results continue to be impacted by the slowdown in the CT market and greater-than-expected impact from the Deficit Reduction Act. We again lowered our FY08 EPS estimate. Management reiterated its FY08 revenue and EPS guidance. Our target price of $17.50 per share is based on a price-to-revenue multiple of roughly 3.3x FY09 revenue estimate.
After 2008, the distribution partnerships driven by the Toshiba relationship are expected to resume making strong contributions and the company with the launch of ViTAL Enterprise is expected to win more direct enterprise deals. The company's sound cash position is being utilized for stock repurchases and may lead to an acquisition over the long-term.
What other companies are coming out with other types of medical devices these days?
Accuray (Nasdaq: ARAY) has developed the first and only commercially available intelligent robotic radiosurgery system, the CyberKnife System, designed to treat solid tumors anywhere in the body as an alternative to traditional surgery. After initially receiving marketing approval in the U.S., the company received additional marketing clearance in the international markets for the system.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting
at.zacks.com/?id=2679.
About Zacks
The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month.
The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
Zacks.com
Mark Vickery
312-265-9380
Visit: www.zacks.com
