BTIG Upgrades ABIOMED (ABMD) to Buy; Analyst Sees Attractive Entry
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Price: $381.02 --0%
Rating Summary:
7 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
7 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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BTIG upgraded ABIOMED (NASDAQ: ABMD) from Neutral to Buy with a price target of $31.00. Analyst Sean Lavin sees an attractive entry point.
"Our initiation spoke favorably on ABMD's technology, but we felt valuation was full at an all time high. We are upgrading to a BUY rating as the current stock price now implies a 4.6x multiple on projected 12-24 month Impella rev, which seems cheap based on growth and margins," said Lavin.
"We view a recent negative competitive report as repetition. ABMD shares have pulled back ~$4 in the last week. Our understanding of this report’s main thesis is that Impella is reaching a point of saturation and could see FDA problems. These are not new views from shorts. Impella is less than ~10% penetrated in the US and far from saturation. The rate of new site adds makes utilization look flat but it is likely growing at older sites. While FDA labeling could be a risk, we feel strongly the PMA application will be approved. We believe the rapid uptake of Impella CP, which is priced higher than Impella 2.5, points to a willingness to pay a premium for this technology," he added.
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 $26.20 yesterday.
"Our initiation spoke favorably on ABMD's technology, but we felt valuation was full at an all time high. We are upgrading to a BUY rating as the current stock price now implies a 4.6x multiple on projected 12-24 month Impella rev, which seems cheap based on growth and margins," said Lavin.
"We view a recent negative competitive report as repetition. ABMD shares have pulled back ~$4 in the last week. Our understanding of this report’s main thesis is that Impella is reaching a point of saturation and could see FDA problems. These are not new views from shorts. Impella is less than ~10% penetrated in the US and far from saturation. The rate of new site adds makes utilization look flat but it is likely growing at older sites. While FDA labeling could be a risk, we feel strongly the PMA application will be approved. We believe the rapid uptake of Impella CP, which is priced higher than Impella 2.5, points to a willingness to pay a premium for this technology," he added.
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 $26.20 yesterday.
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