Piper Jaffray Maintains a 'Buy' on ABIOMED (ABMD); Raises Price Target

June 22, 2009 8:43 AM EDT

Piper Jaffray & Co. maintains a 'Buy' on ABIOMED, Inc. (Nasdaq: ABMD), raises price target from $8 to $10.

Piper analyst says, "Abiomed has been one of the top-performing stocks in our coverage universe over the past three months. We think there is further upside to the stock, and thus, we are raising our price target from $8 to $10 and maintaining our Buy rating...The stock is up nearly 60% since early April. While we suspect much of the easy gains have been made in the stock, we think there is still further upside in the name...For F10, we estimate 20% revenue growth fueled by the continued U.S. market rollout of Impella 2.5. We estimate U.S. commercial Impella 2.5 sales at $46.2MM compared to $24.0MM in F09. While we expect some revenue from the stocking benefit of new center openings (est. 180 new centers in F10), we anticipate the bulk of the revenue to be tied to commercial utilization. In addition, while new center adds are important, much of the sales focus in F10 will be to increase Impella utilization...While Abiomed notes that it's the least expensive LVAD, interventional cardiologists are not accustomed to such high priced single use items. Thus the onus is on Abiomed to educate the clinical community on the value of the device over its price."

To see more analyst ratings on ABMD Click Here.

Abiomed Inc. is a provider of medical devices in circulatory support that offers a continuum of care in heart recovery to heart failure patients.

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