UPDATE: Canaccord Genuity Upgrades Cyberonics to Buy on Strong Fundamentals

Canaccord Genuity raised its rating on Cyberonics

from Hold to Buy and increased its price target from $34 to $56. Canaccord Genuity said, "We are upgrading Cyberonics to BUY from Hold as our previous concerns about the impact of a competitive drug entering the market and a slowdown in replacement sales have not played out to our pessimistic expectations. Furthermore, the company continues to execute from both a sales and product development standpoint. Lastly we believe a change in reimbursement to coverage for treatment- resistant depression by CMS could provide significant upside to expectations and the stock price." Cyberonics closed at $46.36 on Tuesday.