UPDATE: Canaccord Genuity Lowers PT on Cyberonics on CMS Decline

In a report published on Wednesday, Canaccord Genuity analyst William Plovanic lowered the price target on Cyberonics CYBX from $59.00 to $49.00 and maintained a Buy rating.

In the report, Canaccord Genuity noted, "Cyberonics announced that it had received notice from the Centers of Medicare and Medicaid Services (CMS) that it has declined the company's formal request to reconsider the non-coverage decision (NCD) for the depression indication. As a reminder, the company formally submitted its package to CMS in February 2013 to overturn the noncoverage decision from 2007. While this news removes the potential for a significant revenue step-function, we do not believe there will be a lasting affect on shares of Cyberonics as current expectations do not include any contribution from depression in forward projections."

Cyberonics closed Tuesday at $47.75.