Courtesy of Benzinga.
In a report published Monday, Credit Suisse analyst Bruce Nudell upgraded the rating on Volcano Corporation (NASDAQ: VOLC) from Neutral to Outperform, but lowered the price target from $16.00 to $14.00.
In the report, Credit Suisse noted, “Our VOLC upgrade is based on 3 factors: 1) the belief that VOLC’s August long-term sales growth targets are likely achievable (if not beatable), suggesting limited downside to consensus (which assumes 1.8% sales growth in 2015 roughly consistent with 2014 growth despite multiple new product launches & the lapping of Japanese price cuts to help offset FFR competition), 2) VOLC’s more dedicated approach to margin expansion suggests a meaningful intermediate-term profitability ramp & seems to mitigate the risk from M&A execution, & 3) favorable valuation (as described below). We’re lowering our 2015 sales estimates to $408.3M (5.4% CC) from $417.2M (7.6% CC) on lower assumed FFR share & the assumption of increased pricing pressure (we’ve assigned ~2% FFR share to ACIST in 2015, increasing over time), which implies a lowering of our 2014-17 total sales CAGR to 5.0% from 6.4%; however, we still believe there’s likely to be nice potential upside to shares if VOLC can meet our above-consensus sales targets. We’re lowering our DCF-based price target to $14 from $16 on our lowered estimates.”
Volcano closed on Friday at $10.92.
Latest Ratings for VOLC
Date | Firm | Action | From | To |
---|---|---|---|---|
Nov 2014 | Credit Suisse | Upgrades | Neutral | Outperform |
Nov 2014 | Canaccord Genuity | Maintains | Hold | |
Oct 2014 | JP Morgan | Maintains | Neutral |
View More Analyst Ratings for VOLC
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Posted-In: Bruce Nudell Credit SuisseAnalyst Color Upgrades Analyst Ratings