UPDATE: Benchmark Initiates Coverage on Abiomed on Potential of Impella Device

In a report published Tuesday, Benchmark Company analyst Jan Wald initiated coverage on Abiomed ABMD with a Speculative Buy rating and $25.00 price target. In the report, Benchmark Company noted, “We are initiating coverage of Abiomed with a Speculative Buy rating and Price Target of $25. We believe that the company's Impella device offers a compelling benefit to outcomes for patients who need temporary circulatory support, and while the company is facing headwinds from a Department of Justice investigation, we expect that the outcome will be manageable. We also believe the reimbursement decision for the Impella device will be manageable. Abiomed is also participating in the FDA's 515 program to migrate Impella from Class II to Class III which introduces risks but also raises the barrier to entry for competitors. The Impella reduces loading on the heart, compared to the current standard of intra-aortic balloon pumps. Our Speculative Buy rating is supported by our price target of $25, which we derive from a blend of our DCF target price of $29 and our EV/Sales target of $22.” Abiomed closed on Monday at $19.06.