UPDATE: Jefferies Reiterates Buy Rating, Lowers PT on Cyberonics Following CMS Rejection

In a report published Wednesday, Jefferies analyst Raj Denhoy reiterated a Buy rating on Cyberonics

, but lowered the price target from $58.00 to $49.00. In the report, Jefferies noted, “CMS formally rejected Cyberonics' request for reconsideration of its non-coverage policy for depression. While the process was always fraught with risk, the decision to not allow the reconsideration process to move forward is a surprise. We model the base epilepsy business as being worth $49 a share, our new price target.” Cyberonics closed on Tuesday at $47.75.