UPDATE: Piper Jaffray Downgrades Conceptus to Neutral on Macro Concerns

Piper Jaffray reduced its rating on Conceptus

from Overweight to Neutral on valuation and concerns over elective procedures, but raised its price target on shares from $19 to $21. Piper Jaffray noted, "We have increased our multiple from 3.6x due to expected benefits from the Affordable Care Act (ACA) and the exit of a competitor. While we believe the long-term opportunity for new CEO Keith Grossman to rejuvenate growth is intact, we view CPTS as especially vulnerable to the macro economic and volume concerns that are being reported across both the medtech and broader healthcare universes, and we believe the stock has run to near fair value. In particular, we believe utilization trends, and specifically the electability of the procedure, make Essure very susceptible to weakening economic conditions." Conceptus closed at $20.50 on Friday.