Analyst says Vascular Solutions is underappreciated

Vascular Solutions underappreciated and overlooked

Canaccord Genuity analyst Jason Mills thinks Vascular Solutions is "an underappreciated, overlooked growth company."

The Maple Grove-based maker of medical devices for vascular diseases reported its first-quarter results on Tuesday. Revenue was $34.6 million, an increase of 16 percent over the first-quarter last year. Adjusted earnings per share were up 18 percent to 21 cents.

"The bottom line is VASC has delivered premium performance over a long period of time," Mills wrote. "VASC deserves [to trade] at a premium. We reiterate our buy rating and increase our target to $37 from $33."

Patrick Kennedy

Wedbush analyst assumes coverage of Select Comfort

Wedbush Equity analyst Seth Basham assumed coverage of Select Comfort Corp. on Tuesday — a day before the Plymouth-based company announced its first-quarter results — with a buy or "outperform" rating.

"For the stock to keep working, the company must continue to exceed expectations," Basham wrote. "We believe that will happen, and while we are not making a call into 1Q15 results Wednesday …, we see more upside than ­downside risk."

Basham did not need to hedge his first-quarter call. On Wednesday, Select announced its first-quarter sales were $349.8 million and earnings were 54 cents per share, well past analysts' sales expectations of $332.6 million and earnings projections of 41 cents.

Select Comfort's first-quarter results were particularly well timed heading toward a proxy contest with ­activist investor Blue Clay Capital Partners at the company's annual meeting on May 22. In his note, Basham called any activist traction unlikely. "We believe Blue Clay's ideas to eliminate TV advertising, hold total ad spend constant and rapidly accelerate store growth carry significant risk and would depress medium-term earnings."

Patrick Kennedy

Analyst ratings changes on Friday