Leerink Remains Bullish Toward AbioMed (ABMD) After Outstanding Quarter; PT to $88

Leerink Partners maintained an Outperform rating on AbioMed, Inc. (NASDAQ: ABMD) and raises the price target to $88 (from$72) after an outstanding quarter. with accelerating Impella utilization trends, higher sales guidance, signs point to another great quarter.

Danielle Antalffy, an analyst from Leerink Partners said, "We believe ABMD's strong momentum is sustainable for at least the next few years as the company continues to penetrate the emergent and prophylactic (high risk PCI) patient population with: (1) A building body of clinical evidence supporting both the clinical efficacy and cost effectiveness of Impella in even the most complex patients; (2) An on-label indication that opens the door for ABMD to market the device directly to and train heart teams more broadly on the potential benefit in high-risk PCI patients; and (3) A renewed focus by physicians to more aggressively treat these patients, evidenced in part by the recent CHIP initiative at cardiology medical meetings (Complex High Risk Interventional Procedures). ABMD estimates that the elective and urgent high-risk patient population stands at 50,000 in U.S. and growing. Today, the majority of these patients are either not treated or are treated using intraaortic balloon pumps (IABPs) -- which by ABMD's estimate are used in 25,000 - 30,000 cases in the U.S. And this is in a market that's growing as physicians better recognize high-risk patients that could benefit from complete revascularization that previously would have been turned down for surgery. We look for growth over the next few years to be further augmented by the just-approved Impella RP approval and Japan approval (expected in mid-FY2016). We believe ABMD's current ~11x EV/sales multiple on our increased FY2016 sales estimate is sustainable as the company continues to execute, with potential for more upside as ABMD continues to deliver outperformance."

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

Shares of ABIOMED closed at $75.47 yesterday.

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