Oppenheimer Defending Cardiovascular Systems (CSII), Sees 100% Upside

Oppenheimer analyst Suraj Kalia reiterated an Outperform rating and $40.00 price target on Cardiovascular Systems (NASDAQ: CSII).

The analyst comments "CSII stock is down ~40% from our PT cut on Nov. 10, 2021, and currently trades at ~2.6x fwd P/S vs. 7.8x for the small-cap medtech universe. Current valuation portends a dire fundamental scenario for the business, which, in our view, might be misplaced. For investors looking for GARPY names with significant call options on the story, CSII at these levels might be the right name to consider. Underneath, we outline our perspective for why investors should reconsider CSII going into CY22."

Kalia further comments "Valuation metrics portend SWAV baking in a "better than perfect" scenario, with CSII being in dire straits. Our field checks continue to raise questions about IVL's clinical utility, and a more normal competitive environment emerging for CSI (COVID-19 = variable for all). CSII's risk-reward matrix seems favorable at these levels, and long-term growth investors might want to reconsider the name."

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 $19.07 yesterday.

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