Canaccord Genuity lowered its price target for AtriCure Inc. (NASDAQ:ATRC) to $53 from $64 on Tuesday, while maintaining a Buy rating on the medical device company. The brokerage said the move reflects a tightening of valuation across comparable companies, rather than a change to its view of AtriCure's core business.
AtriCure's shares were trading at $32.97 at the time of the report. Analyst targets on the stock span from $36 to $60, indicating notable upside from current levels based on InvestingPro data.
Quarterly results and near-term outlook
The company reported fourth-quarter revenue of $140.5 million, a 13.1% increase year over year. That figure matched AtriCure's January preannouncement and was in line with Canaccord's updated estimate of $139.6 million. The reported performance also contributes to a 15.8% revenue gain over the trailing twelve months.
Adjusted EBITDA for the fourth quarter came in at $19.9 million, and the company recorded positive earnings for the first time in its history. AtriCure's balance sheet shows a current ratio of 3.87, indicating that liquid assets materially exceed near-term obligations.
The company reiterated its fiscal 2026 guidance, projecting revenue growth of 12% to 14% year over year and an adjusted EBITDA range of $80 million to $82 million. However, InvestingPro tips noted that analysts do not expect the company to be profitable this year, highlighting a disconnect between company guidance and some external estimates.
Canaccord's view on growth and defensibility
In its note, Canaccord highlighted AtriCure's primary growth drivers and said the company is positioned to generate incremental operating leverage as revenue scales. The firm pointed to the AtriClip franchise as an area where AtriCure has demonstrated the ability to defend market share, even as competition from Edwards LifeSciences (NYSE:EW) expands.
Canaccord further cited AtriCure's track record of withstanding earlier competitive entry from Medtronic as evidence of its defensibility against new entrants.
Analyst reactions and market response
Alongside Canaccord's revision, other brokerages adjusted their stances. Needham reiterated a Buy rating and set a $45 price target, calling out the company's strong performance. Oppenheimer downgraded AtriCure to Perform from Outperform and removed its $44 target. Citizens lowered its price target to $52 from $60 but kept a Market Outperform rating, noting that the stock's valuation does not yet reflect potential future opportunities.
The company's fourth-quarter results exceeded analyst expectations on several measures. Adjusted earnings per share were $0.06, above the consensus estimate of -$0.10. Revenue of $140.5 million topped the expected $139.55 million and represented 13.1% year-over-year growth. AtriCure maintained its revenue and adjusted EBITDA guidance for 2026 and provided EPS guidance that was above consensus.
Takeaway
Canaccord's price-target reduction centers on a valuation recalibration in the peer group rather than a fundamental reassessment of AtriCure's operating trajectory. The company reported solid revenue growth, positive adjusted EBITDA, and a strong liquidity position, while analysts' views remain mixed as they balance the firm's reported progress against competitive dynamics and market valuation.