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Silk Road Medical stock target raised on solid Q1 sales

EditorAhmed Abdulazez Abdulkadir
Published 05/01/2024, 08:51 AM
SILK
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On Wednesday, Piper Sandler adjusted its outlook on Silk Road Medical (NASDAQ:SILK), a medical device company, by increasing the price target to $20.00 from the previous $18.00, while maintaining a Neutral rating on the stock. The revision follows Silk Road Medical's first-quarter sales report, which exceeded expectations.

The company reported quarterly sales of $48.5 million, surpassing the anticipated $44.7 million target. This performance was attributed partly to a stocking benefit, yet the underlying TransCarotid Artery Revascularization (TCAR) procedure volumes grew by 15% year-over-year, indicating robust demand.

In addition to the strong sales figures, Silk Road Medical confirmed its full-year 2024 revenue guidance, projecting revenues between $194 million and $198 million. This forecast reflects a year-over-year growth of 10% to 12%, reinforcing the company's positive trajectory.

Despite the positive quarter, Piper Sandler has chosen to maintain a cautious stance on the stock. The firm acknowledged that the first quarter results represented a move in the right direction but emphasized the need for Silk Road Medical to demonstrate more consistent performance in the future.

The analyst's statement reflected a balanced view: "Altogether, we thought the Q1 print was a step in the right direction, but we remain on the sidelines for the time being as we look for more consistent execution going forward. We remain Neutral rated, but our PT moves to $20 (from $18)." This indicates a watchful optimism for Silk Road Medical's prospects, pending further evidence of sustained growth and operational efficiency.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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