UPDATE: Citigroup Reiterates Cyberonics Following First Investor Day in Two Years

In a report published Friday, Citigroup analyst Matthew J. Dodds reiterated a Buy rating on Cyberonics CYBX, and raised the price target from $71.00 to $80.00. In the report, Citigroup noted, “CYBX first investor day in 2 years offered an overall bullish update on the prospects for the next four years driven by an increased outlook for initial implants, a new product pipeline that is getting closer to commercialization, and financial forecasts above the consensus. We believe this story will continue to work through med tech growth stock ‘attrition' and are raising our target price. Consistent with the results seen so far in C2013, CYBX now believes US initial implants can grow in 6-10% (putting our 6% forecast on the low end) driven by continued education and sales force expansion. On the flip side, replacement unit growth is estimated at 5-6% which is lower than our 7-9% forecast, but sounds conservative based on management's assumptions.” Cyberonics closed on Thursday at $68.38.