UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on Cyberonics

In a report published Wednesday, Piper Jaffray & Co. reiterated its Overweight rating on Cyberonics

, and raised its price target from $44.00 to $52.00. Piper Jaffray noted, “In reporting FQ1 (July) revenues and earnings exceeding our and Street expectations, CYBX continues to impress. Revenues rose 15%, and adjusted earnings per share were up 40%. GM was maintained at near 92% while adjusted EBITDA margin was 38%. We were modestly surprised on the upside by the 15% of mix in the US for the new higher capacity Aspire HC, and on the downside by the continued slowness in ramping the Japanese market two years after approval. With a large, under-penetrated epilepsy market worldwide, a call option on reimbursement for a depression indication, and $3.86 per share net cash we reiterate our Overweight rating and increase our price target to $52 from $44 based on 28x CY13E EPS (compared to our previous P/E of 25). The multiple increase is warranted by the ongoing consistency of growth, as well as near term access to potential new growth engines.” Cyberonics closed on Tuesday at $46.36.