Leerink Partners Downgrades Cardiovascular Systems (CSII) to Market Perform
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Leerink Partners downgraded Cardiovascular Systems (NASDAQ: CSII) from Outperform to Market Perform with a price target of $17.00 (from $45.00) after the company preannounced weaker-than-expected F1Q16 sales driven by another quarter of salesforce disruption.
Analyst Danielle Antalffy commented, "Clearly the salesforce transition -- in part driven by the cross-training of sales reps between both PAD (peripheral) and CAD (coronary) -- is taking longer than expected. We continue to view CSII's long-term market opportunity favorably given what we believe is the company's significant competitive advantage in both calcified lesions and below-the-knee -- a market that continues to grow at strong double-digits. But we project just mid-single-digit sales growth as reported (including Asahi in prior year periods) for the remainder of FY2016 -- with sales of $193M now vs. $215M previously -- with a rebound not likely until FY2017. We believe the shares will be range-bound for the next few quarters until we and investors begin to see some tangible benefits from recent salesforce adjustments."
Shares of Cardiovascular Systems closed at $16.63 yesterday.
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