Goldman Sachs on Cardiovascular Devices: LVAD Assets Look Mispriced; Upgrading THOR, Initiating HTWR
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Price: $26.56 +0.26%
Rating Summary:
8 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs on Medical Technology/Cardiovascular Devices: LVAD Assets Look Mispriced
Analyst, David H. Roman, said, "After a detailed analysis of the US market for Left Ventricular Assist Devices (LVADs, which are mechanical pumps that assist or replace the heart function of providing blood flow to the rest of the body), we are raising our rating on shares of Thoratec (Nasdaq: THOR) from Neutral to Buy (34.8% upside to our revised $45 12-month price target) and initiating coverage on shares of HeartWare International (Nasdaq: HTWR) with a Neutral rating (4.1% upside to our $93 12-month price target). We see this as a counter consensus call, as shares of THOR are down 0.5% YTD vs. HTWR up 29.5% (vs. the Russell 2000 up 6.9%) in anticipation that HeartWare would take meaningful share upon US market entry (expected in 2H2012). It is also worth noting that the Street is more heavily Buy-rated on HTWR vs. THOR. We are generally constructive on the market for LVADs given low penetration rates and the potential for technology to get better over time. Nevertheless, we see Street numbers as too bullish for HeartWare and too bearish on Thoratec."
Roman also said that THOR's market share may be at less risk than is currently expected by the Street and HTWR potentially faces greater headwinds than current numbers suggest...Bottom line: Competitive fears are overblown on THOR.
To see more ratings on THOR, Click Here
To see more ratings on HTWR, Click Here
Analyst, David H. Roman, said, "After a detailed analysis of the US market for Left Ventricular Assist Devices (LVADs, which are mechanical pumps that assist or replace the heart function of providing blood flow to the rest of the body), we are raising our rating on shares of Thoratec (Nasdaq: THOR) from Neutral to Buy (34.8% upside to our revised $45 12-month price target) and initiating coverage on shares of HeartWare International (Nasdaq: HTWR) with a Neutral rating (4.1% upside to our $93 12-month price target). We see this as a counter consensus call, as shares of THOR are down 0.5% YTD vs. HTWR up 29.5% (vs. the Russell 2000 up 6.9%) in anticipation that HeartWare would take meaningful share upon US market entry (expected in 2H2012). It is also worth noting that the Street is more heavily Buy-rated on HTWR vs. THOR. We are generally constructive on the market for LVADs given low penetration rates and the potential for technology to get better over time. Nevertheless, we see Street numbers as too bullish for HeartWare and too bearish on Thoratec."
Roman also said that THOR's market share may be at less risk than is currently expected by the Street and HTWR potentially faces greater headwinds than current numbers suggest...Bottom line: Competitive fears are overblown on THOR.
To see more ratings on THOR, Click Here
To see more ratings on HTWR, Click Here
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