UPDATE: Canaccord Genuity Downgrades Volcano Corporation to Hold, Lowers PT Following Disappointing Q3 Trends

In a report published Tuesday, Canaccord Genuity analyst Jason R. Mills downgraded the rating on Volcano Corporation VOLC from Buy to Hold, and lowered the price target from $26.00 to $24.00. In the report, Canaccord Genuity noted, “Our upgrade of VOLC last quarter was predicated on the improving trends in the core IVUS business, FFR continuing as a long-term growth engine, and the potential material gross margin expansion. While Q3 results included pockets of good news, adverse trends predominated. While US IVUS rebounded modestly, driven by peripheral IVUS (+40% Y/Y), IVUS and FM results in Japan were very disconcerting to us (-19%, +8%, respectively), and portend share loss, in our estimation. Also, while we still expect significant gross margin expansion long term, it seems we may have to wait longer than expected.” Volcano Corporation closed on Monday at $24.36.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorDowngradesAnalyst RatingsCanaccord GenuityJason R. Mills
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!