Accuray Should Climb on Aetna Coverage Decision

| About: Accuray Incorporated (ARAY)

Jefferies is out with a very positive call on my recent favourite, Accuray (NASDAQ: ARAY) saying they recently learned that Aetna (NYSE:AET) has revised its reimbursement guidlines for sterotactic radiosurgery [SRS] treatment to state that stereotatic body radiosurgery is considered medically necessary for localized malignant conditions within the body where the highly precise application of high-dose radiotherapy is required.

Further, the policy now states that stereotactic radiosurgery with a CyberKnife, GammaKnife or linear accelerator (LINAC) is considered medically necessary in both cranial and full body radiosurgery.This revised policy decision by Aetna, should help further drive utilization of the CyberKnife System, as it will make SRS reimbursement easier.

Jefco's channel checks indicate that trends in FY1Q were strong and they expect results to exceed their revenue, EPS, and CyberKnife placement estimates of $45.6MM, $0.05, and 11 revenue generating units, respectively. FC consensus is at $45.8MM and $0.04.

Reiterates Buy and $29 target.

Notablecalls: Looks like the CyberKnife is gaining traction! That should help the shares to propel even higher. Today!