ZELTIQ Aesthetics (ZLTQ) Sell-Off 'Overdone' - Piper Jaffray

Piper Jaffray analyst Matt O'Brien reiterated an Overweight rating and $40 price target on ZELTIQ Aesthetics (NASDAQ: ZLTQ) saying the continued pullback is overdone with leading indicators at all time highs.

O'Brien commented: "Shares of ZLTQ are down 17% YTD due to concerns about utilization and the potential for a global recession. While we do not want to completely discount the impact of a recession, we believe any slowdown would have a manageable impact on results. Further, and the focus of this note, we believe the selloff due to utilization concerns is overdone. Simply put, investors have imperfect information to accurately assess trends here, so we view the exercise as highly questionable. However, several leading indicators for ZLTQ are at all-time highs including web traffic, Google trends, new account openings and multi-system placements. Finally, we believe that CoolMini has room to run and is likely to be a nice tailwind throughout 2016 with new system placements in facially focused accounts. Consequently, we remain quite bullish on the story. "

For an analyst ratings summary and ratings history on ZELTIQ Aesthetics click here. For more ratings news on ZELTIQ Aesthetics click here.

Shares of ZELTIQ Aesthetics closed at $23.60 yesterday.

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