A new Zacks report upgrades Symmetry Medical to an "outperform" rating, according to an InterCooler report.
Here are five things to know about the upgrade:
1. Previously, the company had a "neutral" rating. With the "outperform" rating, Zacks also issued an $11 target price on the stock.
2. A Zacks analyst cited the company's second quarter earnings — which were up 50 percent — for their new rating. The company beat Zacks Consensus Estimate by 33.3 percent. The company's revenue was also up 2.3 percent to $101.3 million, another growth above expectations.
3. Symmetry Medical divested Clamonta, which will likely negatively impact 2014 earnings and revenue, but the Zacks analyst estimated the move will benefit the company in the future. "The new high-margin surgical business continues to face headwinds, but we believe that long-term prospects of this business are still intact," said the analyst.
4. The company also divested the OEM Solutions business. This move is expected to improve liquidity and enhance growth.
5. Northcost Research also upgraded Symmetry Medical from "neutral" to "buy" on Aug. 5 in a separate research note.
According to a NASDAQ report, Symmetry Medical closed at $9.25 on Aug. 21 and has a market cap of $347 million.