Atricure’s Strong Q1 2025 Performance and Conservative Guidance Justifies Buy Rating Despite Price Target Adjustment

Needham analyst Michael Matson maintained a Buy rating on Atricure (ATRC – Research Report) today and set a price target of $44.00.

Michael Matson has given his Buy rating due to a combination of factors influencing Atricure’s performance. The company reported better-than-expected revenue, EBITDA, and EPS for the first quarter of 2025, surpassing consensus estimates. Despite a slight deceleration in revenue growth to 14% from the previous quarter’s 17%, the company showed strength in its Appendage Management segment, which helped offset slower growth in other areas.
Additionally, Atricure’s margins have improved significantly, with gross margin, operating margin, and adjusted EBITDA margin all showing notable increases year-over-year. Matson views the company’s revenue growth guidance as conservative, suggesting potential for stronger performance in the future. Although the price target was adjusted downward due to peer multiple contraction, the overall outlook remains positive, justifying the Buy rating.

Matson covers the Healthcare sector, focusing on stocks such as Atricure, Boston Scientific, and TransMedics Group. According to TipRanks, Matson has an average return of -9.5% and a 33.94% success rate on recommended stocks.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $60.00 price target.