Dynavox Inc fka DVOXQ

[elcheepo]

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on DynaVox Inc. (NASDAQ: DVOX); it has a $20.00 price target on the stock.

The PJ analysts said that the company’s speech technology line will have a tough comp, adding that speech generating devices and related equipment are roughly 81% of overall DVOX revenues.

The analysts also noted that, despite the difficulties in the US economy over the last 3 years, DVOX “grew revenues at a CAGR of 17% from FY07-FY09. Over the last 9 months revenues were up 34%. In other words, we believe the quality of the products and service, the under-penetrated market, and the increasing marketing push from DVOX have contributed to the counter-intuitive growth.”

As for valuation, the analysts noted, “Our 12-month price target of $20/share assumes a P/E multiple of 31 times, representing the average P/E of the top half of our small cap medtech group with earnings, applied to our CY11 EPS estimate of $0.66/share.”