Duncan-Williams Maintains Buy on Exactech

Duncan-Williams is out with its report today on Exactech EXAC, maintaining Buy. In a note to clients, Duncan-Williams writes, "We continue to believe that EXAC is undervalued, and we encourage investors to do due diligence on the company. Our investment thesis is focused on EXAC's extremities business which grew 32% in 2010 and posted 33% growth in Q1:11. For 2011, we estimate Extremity revenue of $38.4 million or 28% growth from 2010. The knee business remains a key business for EXAC (40% of total revenue in Q1:11). We remind investors that the Hip business (21% growth in Q1:11) has been the 'Upside Surprise' in the story during the last two quarters (21% growth in Q4:10 and 21% growth in Q1:11). We remind investors that EXAC does not have a metal on metal hip. We continue to like the EXAC story, and we believe that the risk reward scenario is clearly in the investors favor." Duncan-Williams maintains a $23 PT on EXAC. Shares of EXAC closed Thursday at $18.05.