UPDATE: Piper Jaffray Downgrades ABIOMED to Neutral, Reiterates $18 PT on PMA Pathway Risk

In a report published Tuesday, Piper Jaffray analyst Brooks E. West downgraded the rating on ABIOMED ABMD from Overweight to Neutral, but reiterated the $18.00 price target. In the report, West noted, “We are downgrading ABMD to N from OW. While we continue to see a host of positives, we believe the current valuation range balances FDA pathway risk against potential opportunities. Our biggest concern remains future FDA PMA requirements, which provide primarily indication risk and incremental clinical trial cost risk. We also believe procedure mix continues to shift to shock from high-risk PCI which while less controversial longer term, could call into question the sustainability of PCI volumes going forward. However, on the positive side we believe recent favorable reimbursement wins, and a growing product pipeline as well as the potential for movement into new markets such as Japan (by year end 2013), provide additional revenue opportunities, and should provide a floor for shares at current levels. We maintain our $18 PT (updated to 3.4x EV/CY14E Sales from 3.7x EV/CY13E Sales to reflect change in time).” ABIOMED closed on Monday at $17.20.