Leerink Partners Upgrades Cardiovascular Systems (CSII) to Outperform

August 22, 2016 7:03 AM EDT
Get Alerts CSII Hot Sheet
Price: $22.54 --0%

Rating Summary:
    11 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 2
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Leerink Partners upgraded Cardiovascular Systems (NASDAQ: CSII) from Market Perform to Outperform with a price target of $30.00 on solid growth potential and improving execution.

Analyst Danielle Antalffy commented, "We are upgrading CSII to OP with a $30 12-month price target. Now with two solid quarters in a row of stable-to-improving growth and a new CEO in place, we believe the company has reached a fundamental inflection point after several quarters of underperformance in light of sales force disruptions and poor execution. We have always believed that CSII is well-positioned to be a market leader in a peripheral atherectomy market growing sustainably in the high-single-digit range and a coronary atherectomy market growing even faster, given its competitive advantage in both calcified lesions and below the knee – both heavily underpenetrated markets within the space. Beyond the top line, CSII’s recent efforts to control cost – announcing a restructuring in March that includes an 8% reduction in the workforce – could push the company to profitability faster than we had previously expected. We now believe CSII can turn net income profitable by mid-to-late FY2018E – four quarters earlier than our prior late 2019E assumption. And the company seems poised to turn cash flow positive even sooner – in the current FY2017. This pathway to profitability can and should enable CSII to attract a broader investor base and attract new money to the name that can continue to support shares."

For an analyst ratings summary and ratings history on Cardiovascular Systems click here. For more ratings news on Cardiovascular Systems click here.

Shares of Cardiovascular Systems closed at $22.60 yesterday.

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