Piper Jaffray Raises Price Target on Abiomed (ABMD) Following 1Q16
Piper Jaffray reiterated a Neutral rating on ABIOMED (NASDAQ: ABMD), and raised the price target to $85.00 (from $71.00), following 1Q16 results. Abiomed reported F1Q16 revenue of $73.4M vs. consensus $66.0M. Management plans to provide a business update including a 5-year plan and pipeline update at its August 11 investor day.
Analyst Brooks West commented, "Abiomed reported F1Q16 revenue of $73.4M (+50.4%) vs. consensus $66.0M. Revenue growth accelerated sequentially from 34% in F4Q15. F1Q revenues were driven by US Impella growth of 60% to $63.7M with management reporting a 62% increase in US Impella patient utilization. Volume increases are coming from increased utilization at existing sites as ABMD added 15 new Impella centers in 1Q, bringing its installed base to 973, in-line with management’s recent commentary on focusing on increased penetration of existing centers. Given ABMD has at least a 2-3 year head start in the US over Thoratec's PHP device, and given the large patient opportunity within the high-risk PCI market and ABMD’s low single-digit penetration into that opportunity, we believe high levels of growth should be sustainable for some time. Mgmt plans to provide a business update including a 5-year plan and pipeline update at its August 11 investor day. We remain Neutral on valuation."
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Shares of ABIOMED closed at $88.80 yesterday.