UPDATE: Goldman Sachs Upgrades Volcano to Buy

Goldman Sachs raises its rating on Volcano

to Buy with a price target of $36, on increased confidence in the company's Fractional Flow Reserve. Goldman Sachs notes, "Given increased confidence in the company's burgeoning Fractional Flow Reserve (

) business and the potential for this technology to drive accelerating outer year growth, we are upgrading VOLC to Buy from Neutral and raising our price target to $36 (on higher forecasts), implying 27% upside. FFR has the capacity to reduce healthcare costs through improving patient selection and clinical outcomes in coronary stents. FFR adoption combined with stability in the base vascular imaging franchise should drive mid-teens top-line growth for the foreseeable future, in our view." VOLC closed at $28.40 yesterday.