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UBS Upgrades Spectranetics From Sell To Buy, Raises Price Target 200%

UBS Upgrades Spectranetics From Sell To Buy, Raises Price Target 200%

UBS upgraded Spectranetics Corp (NASDAQ: SPNC) to Buy from Sell, and lifted its price target to $30 from $10. As per the report published Wednesday, the major driver for the rating change is the reduced risk of further significant slowing of the company's core VI business and the increasing focus on Stellarex as the key driver for the company's next phase of growth.

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According to the analysts, the company's Q2 results demonstrated sequential stabilization of the company's core vascular intervention businesses for peripheral and coronary intervention, clearing the way for the company's Stellarex drug-coated balloon (DCB) platform to take over as the central value driver for the stock.

"By our analysis, >50 percent of our projected 12-month target valuation is now driven by the long-term growth and value associated with Stellarex," UBS said.

At time of writing, Spectranetics was up 4.28 percent on the day at $24.08.

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