Freedom Capital downgrades AtriCure stock rating to hold, raises price target to $57

Freedom Capital has downgraded its rating on AtriCure Inc. (NASDAQ: ATRC) stock to Hold from Buy and increased its price target to $57 per share. The adjustment is based on projecting AtriCure's estimated 2027 EBITDA at approximately 25 times its current value. The company anticipates positive results from the BoX-NoAF POAF study, with in-house findings expected in Q1 2027 and a public release in Q2 2027.

While the firm acknowledges prior supportive data has caveats that could reduce potential upside, a positive POAF label could act as a significant sales and margin catalyst starting in 2028 and beyond. AtriCure's stock has nearly doubled since June, currently trading at elevated EBITDA multiples compared to peers and its historical performance. Over the past six months, the stock has given investors an 84% return, though it recently fell 8.2% in a single week from its 52-week high of $61.70.

InvestingPro data indicates AtriCure is trading at an EV/EBITDA multiple of 78, suggesting the stock is overvalued relative to its fair value. The firm believes mid-term growth acceleration is mostly already priced into the stock. AtriCure reported strong Q2 2026 earnings, surpassing Wall Street expectations with adjusted earnings of $0.18 per share versus an anticipated loss of $0.01, and revenue of $153.6 million, exceeding forecasts of $151.84 million.

Despite this positive news, the company's stock saw a decline in after-hours trading as investors showed caution about its future outlook for the remainder of the year.

Several other analysts have also revised their price targets for AtriCure. Needham raised its target to $64, citing the potential impact of the BoX-NoAF trial. Piper Sandler increased its target to $60, noting a new quality measure by the Society of Thoracic Surgeons as a positive catalyst. BTIG raised its target to $55, also referencing the Society of Thoracic Surgeons' quality metric as a potential driver for AtriCure's Open Ablation products.

Stifel maintained a Buy rating with a $65 target, highlighting the company's strong performance in beating revenue and profitability expectations.