UPDATE: Oppenheimer Initiates Volcano at Outperform on Multiple Positive Factors

In a report published Thursday, Oppenheimer analyst Steven Lichtman initiated coverage on Volcano VOLC with an Outperform rating and $24.00 price target.

In the report, Oppenheimer noted, “We are initiating coverage of Volcano Corp. with an Outperform rating and $24 price target. Volcano is a leading developer of precision-guided diagnostic tools in the hospital catheterization lab. We like VOLC's strong pipeline, new market opportunities (peripheral) and meaningful leverage opps (starting with its Costa Rica plant next year). Near term, PCI market pressures overshadow as a headwind to '13 growth. However, at 2.6x '13E EV/sales (a ~20% discount to peers), we believe this is reflected in the shares. Our interventional cardiologist survey supports our view that VOLC's FFR technology has a long runway ahead.”

Volcano closed on Wednesday at $18.87.