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Zeltiq Aesthetics Inc (NASDAQ:ZLTQ): Goldman Sachs Group Inc (NYSE:GS) Lifts Price Objective On Higher Estimates

Boston, MA 09/22/2014 (wallstreetpr) – Investment advisor Goldman Sachs Group Inc (NYSE:GS) has boosted its price target on the shares of the medical device company, Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) based on increased estimations. The move follows after the company’s investor day meeting.

Lifts Price Tag

The brokerage has increased its price target to $27 from $24 on the shares of Zeltiq Aesthetics Inc (NASDAQ:ZLTQ). Analyst David Roman said that his revised price objective was based on a 50/50 weighting of 4X2015 estimated enterprise and sales value and discounted cash flow.

The analyst, who attended the company’s 2014 Investor Day, said that the meeting centered on its business model, pipeline efforts, total addressable market and competitive positioning. He said that the company also provided long-range objectives including a minimum of 20% revenue compounded annual growth rate or CAGR for the period between 2014 and 2019. This apart, Zeltiq provided adjusted EBITDA margins of 25-30% objective supported by fresh indications or products amidst under-penetrated, growing market non-invasive body sculpting.

Increases Estimates

The brokerage said that it was raising the sales estimations for 2014+, partly compensated by increased discretionary spend.

Overall, Goldman Sachs Group Inc (NYSE:GS) analyst said that he could see the company’s story and its way to sustained growth though he has set his estimations below the management’s objectives. The primary discrepancy between his model and the company’s was that it depends on TAM and penetration thereof under the circumstances of comparatively high expectations.

Roman said that apart from short-term trading dynamics, Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) management presented a compelling case that new indications or products are levers that may not be completely appreciated at the moment. He pointed out that the management has kept its long-term targets above the current consensus estimations. The team has already earned a reputation for beats and lifting of its outlook.

Rating of Stock

Though he raised the price objective, the analyst maintained his Neutral rating on Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) shares on balanced risk/reward since he could see more upside elsewhere in his universe coverage.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.



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