UPDATE: Canaccord Genuity Downgrades RTI Surgical to Hold, Lowers PT Following In-Line Revenue, Lowered Guidance

In a report published Wednesday, Canaccord Genuity analyst William J. Plovanic downgraded the rating on

from Buy to Hold, and lowered the price target from $5.00 to $3.50. In the report, Canaccord Genuity noted, “We are downgrading our rating to HOLD from Buy following an in-line revenue quarter and lowered guidance. We are disappointed by the projected slower-than-expected commercial ramp for the Fortiva porcine dermis product, and believe clarity on MAP3 has still not been fully obtained. Furthermore, we note that the FDA Warning Letter has not been resolved, timing is uncertain, and the company is one of many awaiting re-inspection in the tissue processing segment. As a result of the issues stated above, we believe RTI is turning into a 2H/14 story. More specifically, we believe investors can wait until the integration of Pioneer Surgical is complete and more commercial clarity is gained on Fortiva and MAP3 before becoming active in the stock.” RTI Surgical closed on Tuesday at $4.03.