UPDATE: Credit Suisse Upgrades Volcano Corporation to Outperform on Favorable Risk/Reward

Credit Suisse upgraded Volcano Corporation
from Neutral to Outperform with a $27 price target. Credit Suisse commented, "We see VOLC as a unique growth story among med-tech with exposure to fractional flow reserve (FFR) driving double digit overall sales growth & 40%+ EPS growth 2012-17. VOLC shares have underperformed following the announcement of a $300M convert in early Dec. due to convert-related EPS dilution & concerns that the added capital would lead to M&A-related EPS dilution. The key risks to the story continue to be M&A execution & VOLC's ability to execute on its plan to expand EBIT margins, however, at current levels we believe risk reward is favorable & see an OP rating as appropriate." Volcano Corporationclosed at $22.52 on Thursday.
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