Surmodics earnings selloff a buying opportunity, says Barrington

Barrington lowered the firm’s price target on Surmodics to $70 from $71 and keeps an Outperform rating on the shares. The analyst views the post-earnings selloff in the shares as a buying opportunity. While some investors are disappointed that expenses will rise in the second half of 2024 and that Q1 will likely be the high-water mark for profitability, Barrington sees the company’s willingness to ramp up investment in its Pounce platform as a “material long-term positive indicator, a sign of high conviction that is likely being driven by strong surgeon feedback.”