Jefferies Cuts Price Targets on Volcano (VOLC) Following Poor Guidance

Jefferies is reaffirming its Hold rating on shares of Volcano Corp. (NASDAQ: VOLC) and is lowering its price target from $31 to $27.

The company released its Q3 results inline with expectations, but tweaked its FY11 and FY12 guidance lower than the firms and Street's previous expectations.

An analyst at Jefferies comments, "While Volcano posted an overall in-line quarter, two noteworthy metrics we would highlight from the results are 4 percent year over year growth in US IVUS catheters, which represents a marked slowdown relative to the past where growth has invariably been double digits, and IVUS penetration in the US flat-lined for the first time at about 16 percent."

Jefferies estimates EPS of $0.21 for FY11, $0.38 for FY12, and $0.61 for FY13.

For more ratings news on Volcano Corp. click here and for the rating history of Volcano Corp. click here.

Shares of Volcano Corp. closed at $24.93 yesterday.

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