Needham & Company Starts Volcano Corp. (VOLC) at Hold

Needham & Company initiates coverage on Volcano Corp. (NASDAQ: VOLC) with a Hold rating saying growth is likely to stay dormant.

Analyst Mike Matson comments, "Growth in VOLC's coronary IVUS and FFR businesses has slowed due to market maturation, economic challenges, and declining PCI procedures. Given the structural nature of these issues, we do not expect growth to recover. VOLC has refocused on peripheral IVUS and therapeutic devices as new growth drivers, and while we expect these to increase its revenue growth, we believe this is already reflected in guidance that requires a substantial increase in 2H14 growth. Additionally, Boston Scientific's (BSX) expected entry into the FFR market represents an overhang in our view. Given this, and a valuation that is in line with peers, we are initiating coverage with a Hold rating."

For an analyst ratings summary and ratings history on Volcano Corp. click here. For more ratings news on Volcano Corp. click here.

Shares of Volcano Corp. closed at $22.88 yesterday.

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