>>In the report, Piper Jaffray states, "ARAY has now successfully escaped its troubled past that included material backlog revisions and deferred revenue recognition controversies. Given the solid new order growth, sales growth and unexpectedly strong gross margin and earnings outperformance we believe the stock no longer deserves to trade at a discounted valuation relative to other small cap medical technology companies. Our revised price target of $10 is now based on 1.7x our FY12 EV/REV estimate, which is in-line with the current median multiple for our small cap medical technology comp group. We remain strong buyers of the stock at current levels."
Shares of Accuray were trading at $7.97 at the time of posting, up 16.18% from Thursday's market close.