Piper Jaffray Raises Price Target on Vascular Solutions (VASC) to $49 Following 2Q Beat

Piper Jaffray reiterated an Overweight rating on Vascular Solutions (NASDAQ: VASC), and raised the price target to $49.00 (from $45.00), following the company's 2Q earnings report. VASC reported revenue of $41.2M, slightly ahead of the consensus of $41.1M. Adjusted EPS was also ahead of consensus coming in at $0.33 compared to $0.30. Management was very upbeat regarding the development of its freeze-dried plasma product, which the US Army is scheduled to submit an IND to the FDA on August 26.

Analyst Brooks West commented, "Vascular Solutions reported better-than-expected 2Q16 results including revenue of $41.2M vs. consensus of $41.1M and adjusted EPS of $0.33 vs. consensus of $0.30. VASC’s top eight products, which accounted for 79% of revenue in the quarter, grew 12% y/y as a group including 21% y/y growth in Radial Access and 24% y/y growth in Micro-introducer kits. FY16 revenue guidance was raised to $164-$166M vs. $163-$166M prior and the adjusted EPS guidance range was brought up by $0.03 on both ends to $1.22-$1.26 vs. $1.19-$1.23 prior. Without the distraction from the Short Kit litigation and with continued strong organic revenue growth from its existing product portfolio, the ~ $100M RePlas opportunity, and the potential for continued organic operating leverage (600-800bps pre-RePlas), we expect VASC shares to continue to work. We raise our target to $49 ($45 prior)."

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

Shares of Vascular Solutions closed at $42.32 yesterday.

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