Oppenheimer has cut its rating on AtriCure Inc. (ATRC) to Perform from Outperform and withdrawn a previously issued $44 price target, citing worries about the company’s long-term growth trajectory amid intensifying competition in the left atrial appendage closure market.
The healthcare device maker is currently valued at $1.64 billion. Its shares have fallen 16.66% so far this year, and the company has reported a negative EBITDA of $6.21 million for the last twelve months.
The analyst update follows AtriCure’s fourth-quarter 2025 financial release showing revenue of $140.5 million. That top-line figure matched the company’s pre-release guidance and was essentially in line with analyst expectations - Oppenheimer’s own estimate was $139.0 million while consensus stood at $139.3 million.
Despite solid gross profitability - AtriCure reported a gross profit margin of 74.87% - the firm’s stock currently trades slightly above a fair-value benchmark produced by market analysts. Oppenheimer’s note emphasized that strong margins do not fully offset the competitive dynamics the firm sees ahead.
Central to Oppenheimer’s concern is new product activity from Edwards Lifesciences. On Feb. 10 Edwards announced it is developing new left atrial appendage closure products that are expected to arrive in late 2026. Oppenheimer flagged the risk that Edwards, given its established surgical franchise, could capture significant share of the open ablation left atrial appendage closure market even if AtriCure continues to deploy its LeAAPS product.
Oppenheimer additionally raised the possibility that Edwards might expand its position through acquisition, specifically noting the potential for Edwards to acquire Pulse Biosciences’ Nanoclamp technology - a scenario the firm said would further heighten competitive pressure.
On AtriCure’s operational performance, the brokerage pointed to 12% growth in the company’s core atrial fibrillation ablation business when excluding pain management. The firm noted that this growth rate is reduced once adjusted for increases in average selling prices. In response to the quarter’s results and the company’s fiscal 2026 guidance, Oppenheimer adjusted its own estimates.
Other recent analyst commentary and financial metrics present a mixed picture. AtriCure reported adjusted earnings per share of $0.06 for the fourth quarter of 2025, beating the analyst consensus of -$0.10. Revenue of $140.5 million modestly exceeded an expected $139.55 million and represented a 13.1% year-over-year increase. Company management attributed the quarterly strength to broader adoption of its pain management, open ablation, and appendage management product lines.
Separately, investment firm Citizens lowered its price target on AtriCure to $52.00 from $60.00 but maintained a Market Outperform rating. Citizens analyst Daniel Stauder observed that AtriCure shares trade at approximately 2x enterprise value to revenue, a valuation metric he contends does not fully capture potential upside tied to future opportunities.
Taken together, the data and analyst actions paint a picture of a company with solid recent quarterly execution and strong product margins, but also one facing credible competitive threats that have prompted at least one brokerage to temper expectations and withdraw a previous price target.
Summary
Oppenheimer downgraded AtriCure to Perform from Outperform and removed its $44 target amid concerns about secular decline and competitive encroachment in the left atrial appendage closure market. The company reported $140.5 million in fourth-quarter 2025 revenue and adjusted EPS of $0.06, but holds a negative trailing twelve-month EBITDA of $6.21 million and trades roughly 2x EV/revenue according to one analyst.