UPDATE: Piper Jaffray Initiates ICU Medical at Overweight on Tailwinds From Healthcare Reform

Piper Jaffray initiated coverage on ICU Medical

with an Overweight rating and a $70.00 price target. Piper Jaffray commented, "Revenues in 2012 were $317M (up 6.2% constant currency), with operating margin of 19.3% (up 190 bp y/y) and non-GAAP EPS of $2.80 (up 8.3% y/y). Hospira (HSP) is a major OEM customer, representing ~40% of 2012 revenues. ICUI has over $15/share in cash and securities, and holds no debt. We believe that as revenue growth re-accelerates in 2013, multiple expansion will drive 20%+ shareholder return over the next year. Our price target of $70/share is based on 22x our 2013 EPS estimate of $2.78, plus $9/per share of non-working capital cash." ICU Medical closed at $57.40 on Wednesday.