Piper Jaffray Cuts Impac Medical to Underperform
Piper Jaffray downgraded Impac Medical Systems (IMPC ) to underperform.
Analyst Ryan Stewart says he downgraded the medical record and billing company from market perform as the resignation of auditor Deloitte & Touche serves as a major blow. He believes, aside from delayed earnings, Deloitte's departure could be crippling in the near term, and he sees a potential Nasdaq delisting.
Stewart says the news comes on top of other big negative factors, including a highly conservative revenue-recognition policy, increased competition from linear accelerator players, and industry reimbursement concerns. He cuts the $15 price target to $8. Stewart sees 7 cents third-quarter earnings per share, 6 cents in the fourth quarter, 25 cents in fiscal 2004 (Sep.), and 55 cents in fiscal 2005.
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