Canaccord Adams Assumes Coverage on Vascular Solutions (VASC) with a Buy

October 21, 2009 12:55 PM EDT

Canaccord Adams assumes coverage on Vascular Solutions (Nasdaq: VASC) with a Buy. Price target $11.50

Canaccord analyst says, "Steady product roll outs ahead. The company has launched seven new products YTD (including the Piggyback wire converter in Q3) and has five more slated for Q4. What’s more, the pipeline is full, with ~10 products possible for next year. Operating leverage continues to play out. VASC posted an OM of 12.6%, exhibiting good cost control with OpEx increasing less than 8% vs. sales growth of 11%. The company’s continued operating margin expansion is one of the primary reasons we’re bullish on the shares. Product development on track. VASC could submit its PMA for a Thrombi-Gel surgical indication (key to realizing sales benefit from its King partnership) in late 2009/early 2010. OUS clinical studies for Magne-Seal – targeting the $500M vascular sealing market – are slated to begin in H1/2010, basically in line with our thinking...As the company’s growth reaccelerates, we believe a smaller discount to its peers could be justified. Near-term catalysts may include: higher-than-expected gains in the patch market, signing of a major interventional cardiology distributor deal, beginning of Magne-Seal trials outside the US, and FDA approval of Thrombi-Gel for surgical use."

To see more analyst ratings on VASC Click Here.

Vascular Solutions, Inc., a medical device company, develops solutions to interventional cardiologists and interventional radiologists worldwide.

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