UPDATE: Canaccord Genuity Upgrades Thoratec Corporation Following Solid Q3 Results
In a report published Thursday, Canaccord Genuity analyst Jason R. Mills upgraded the rating on Thoratec Corporation (NASDAQ: THOR) from Hold to Buy, and raised the price target from $38.00 to $45.00.
In the report, Canaccord Genuity noted, “After solid Q3 results, which included both upside and downside to various metrics in our model, we feel it's time to formalize our previously published ‘call' to own both stocks within the global VAD duopoly. We continue to see more upside potential in shares of Heartware (HTWR ; NASDAQ : $73.35 | BUY) over time via share gain and faster growth, which relies on 1) improved stroke outcomes in future DT clinical data per revised BP management protocol to drive DT approval by H2:16, and 2) MVAD progressing to FIM followed by European and US trials in 2014/2015 timeframes. That said, we recognize there is risk inherent in these assumptions. What's more, our survey work and other research support our bullish stance on the US TAVI market's growth potential near and long term. Lastly, we are optimistic about THOR's growth prospects near term in Japan, and longer term in the acute HF market with HM-PHP (not in our estimates). Thus, we upgrade THOR to BUY and increase our target from $38 to $45 (4.5x EV to 2015E sales; HTWR target uses 5.5x, via faster expected growth).”
Thoratec Corporation closed on Wednesday at $39.35.
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