UPDATE: Credit Suisse Initiates Volcano at Outperform
Credit Suisse initiates Volcano (NASDAQ: VOLC) at an Outperform rating and a price target of $36.
Credit Suisse notes, “Given its 15% top-line and ~ 40% EPS growth potential, we see VOLC as a unique investment opportunity within med-tech that should create value for investors with a long-term horizon. As a result, we are initiating with an Outperform rating and a $36 DCF-derived target price. While our target price implies a premium valuation of 4.1 times 2015 sales (discounted back at our assumed 8.8% weighted-average cost of capital), we believe that it is justified, given the company's solid growth profile and because VOLC is likely to be viewed as an attractive takeout candidate by larger med-tech players.”
Volcano closed at $29.64 on Friday.
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