Analysts wary of Mazor Robotics

Mazor X, photo: Mazor Robotics website
Mazor X, photo: Mazor Robotics website

Investment houses are warning that the share is expensive and could tumble.

Even after the company published good financials, the negative recommendations to investors about Mazor Robotics Ltd. (Nasdaq: MZOR; TASE:MZOR) are still coming. More and more investment houses are recommending that investors beware. The company share price, which has climbed 75% this year, attracted new coverage yesterday from B. Riley, which issued a "Neutral" recommendation for the share with a target price of $31, 26% below the yesterday's closing price on Wall Street.

B. Riley's recommendation was no exception; investment houses are sounding alarms about the share price of the medical equipment company, which is soaring. In late April, Barclays Bank cut its recommendation for the company share from "Outperform" to "Market perform, also with a target price of $31. Barclays Bank explained its revision by citing value considerations. Nevertheless, just a few days later, Barclays Bank raised its target price for the Mazor share - to $32.

In mid-April, Standpoint Research analysts took the question of value and recommendation one step further, or rather, one step back, slashing their recommendation from "Buy" to "Underweight," with a target price far below the current market price - $28.

On the other hand, investment bank Ladenburg remains bullish about the share. It published a very sympathetic review yesterday, in which it retained its "Buy" recommendation, while raising its target price to $46.

The company itself published its first quarter results yesterday, reporting a $5.2 million loss, compared with a $5.1 million loss in the first quarter of 2016, while its operating loss rose to $5.7 million.

Still, it appears that as of now, the investors are focusing on the surge in the company's revenue and the moving of its cash flow into the black during the first quarter, giving it a further upward push yesterday in New York.

Published by Globes [online], Israel Business News - www.globes-online.com - on May 11, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Mazor X, photo: Mazor Robotics website
Mazor X, photo: Mazor Robotics website
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