UPDATE: Barrington Research Upgrades SurModics on Stable Cash Flow

In a report published Tuesday, Barrington Research analyst Charley Jones upgraded SurModics SRDX from Market Perform to Outperform and assigned a $27 price target to the company.

In the report, Barrington Research commented, "In our opinion, SRDX has completed  the first phase of its reorganization and rebranding as a company to both the market and Wall Street and is currently in assessment mode of how to best execute the second phase of its restructuring, which involves more changes to the capital structure but likely growth through acquisition as well. SRDX has meaningfully stable cash flows, a very profitable business and people in place to capitalize on the Serene and DEB growth opportunities ahead of it. That said,  management recognizes that further shareholder value by augmenting the opportunity within DEB for example to capture a greater portion of the potential. The value that comes from taking a drug-eluting balloon to Phase II is potentially much more valuable than demonstrating an ability to add a polymer to a balloon."

SurModics closed on Tuesday at $22.00.