TOMOTHERAPY SHARES RISE ON BAIRD ANALYST UPGRADE
Forbes.com
Shares of TomoTherapy Inc. rose Wednesday after a Baird analyst upgraded the stock, citing the company’s niche position in the radiation therapy market.
THE SPARK: Analyst Jeff D. Johnson upgraded shares to “Outperform” from “Neutral” and boosted his price target to $5. He said market trends have improved for the company in recent months and TomoTherapy ( TTPY – news – people ) will likely maintain its current small share of the market. He said orders for radiation therapy systems could top 55 systems and installs could top 50 systems in 2010.
TomoTherapy makes radiation systems designed to target tumors while reducing exposure to surrounding healthy tissue.
THE ANALYSIS: “With our field checks improved, we’re incrementally comfortable TomoTherapy can maintain its status as a niche provider in the $3.6 billion worldwide radiation therapy market and that risk of a draconian fall-off in demand for the company’s products has fallen,” Johnson said, in a note to investors.
SHARE ACTION: Up 16 cents, or 5.1 percent, to $3.28 in morning trading. The stock has traded between $2.59 and $4.67 over the last 52 weeks.