Leerink Partners Downgrades Cardiovascular Systems (CSII) to Market Perform

October 8, 2015 6:24 AM EDT
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Price: $39.24 +1.26%

Rating Summary:
    11 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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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."

For an analyst ratings summary and ratings history on Cardiovascular Systems click here. For more ratings news on Cardiovascular Systems click here.

Shares of Cardiovascular Systems closed at $16.63 yesterday.



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