Accuray Incorporated (NASDAQ:ARAY) announces that it has received 510(k) clearance from the FDA for its Radixact Treatment Delivery Platform, its new treatment planning and data management systems, Accuray Precision Treatment Planning System and iDMS Data Management System.
These next generation hardware and software solutions which, together, make up the new Radixact system, enable faster, more efficient delivery of extremely precise treatment to a wider range of cancer patients, including those undergoing retreatment. The new Radixact system represents a major step forward in the evolution of the TomoTherapy (TOMO) System in treatment speed and ease of use.
Accuray will initiate commercial release of the Radixact System in late fiscal Q1 (calendar Q3).
Brean recently published its most compelling investment ideas for Q2. Among them:
ETSY - target price $20. Implied upside 126%. "We believe Etsy’s seller services efforts (advertising, payments, and shipping) provide multiple means for the company to materially increase the value of its platform of 24.0M buyers and 1.6M sellers of handmade and vintage merchandise."
HRTX - target price $55. Implied upside 167%. "The FDA should finally get its act together and approve the Sustol NDA in early April. We view the almost 3-month delay as a nonissue because we do not believe that anything inherent about Sustol is causing the delay."
SCYX - target price $16. Implied upside 276%. "SCY-078, SCYNEXIS’ lead product candidate, has the potential to become the first glucan synthase inhibitor available both orally and intravenously... Based on the size of the market, competition from other drug candidates in development is limited, and we expect SCY-078 to compete well in the market if approved."
ARAY - target price $12. Implied upside 99%. "We believe the company is finally positioned to reliably grow at 2-3 times the market (which is currently posting 2-3% growth), and thus we are willing to stick our necks out and once again make this a top pick. We also see leverage in the P&L, anticipating further gross margin gains, but mostly from operating expenses, which are expected to grow at only half the rate of the top line."
STX - target price $65. Implied upsdoide 152%. "We believe gross margin will continue to recover as product cycle drive, along with cost savings, will lead to margin expansion back to ~28%, from 24.2% and 25.6% in the Sep Q and the Dec Q, respectively. STX dividend yield of 7%+ displays confidence in the business model and its ability to remain extremely cash-flow generative."
WDC - target price $120. Implied upside 191%. "We believe WDC / SNDK can generate FY17 EPS of $8.00+ and the stock “normalized” should garner at least a 12x multiple, with potential for 15x, expanding from current PE of <6x."
CRM - target price $100. Implied upside 30%. "In our view, salesforce.com has now replaced SAP and ORCL as the de facto standard in enterprise business applications, which positions the company for the next stage of growth... Our checks indicate large global system integrators are actively pitching salesforce.com solutions over SAP and ORCL, reflecting salesforce.com’s de facto standard status in the enterprise application market."
Accuray (ARAY +0.9%) has repurchased ~$63.4M aggregate principal amount of its 3.75% Convertible Senior Notes due August 2016 for $66.6M in cash. The company intends to redeem the remaining $36.6M of the issue no later than August.