Canaccord Genuity Reiterates a 'Buy' on Heartware Intl (HTWR); Changes Coming to LVAD Market
Canaccord Genuity reiterates a 'Buy' on Heartware Intl (NASDAQ: HTWR), raises PT from $98 to $115.
Canaccord analyst says, "We prefer HTWR common from a long-term investment standpoint, but also believe Thoratec (Nasdaq: THOR common represents a favorable risk/reward investment at current levels. As a result of the November release of HTWRs strong HVAD BTT data, THOR is still hovering around its 52-week low in the $25-27 range, while HTWR is near an all-time high. In light of both companies product pipeline announcements two weeks ago (which favored HTWR in our view), for THOR shares to appreciate we believe the company must 1) produce upside to estimates over the next few quarters 2) show strong momentum in the US DT market, and 3) keep pace with HTWRs strong European growth. While we believe there are risks to each of these, we believe the current trading level for THOR offers a modestly positive risk/reward profile. For HTWR, we would buy any dips aggressively as we believe it could become the #1 share player by 2015."
For HTWR 2011: Raise revenue estimate to $90M from $82M; LPS to ($2.19) from ($2.53). 2012: Raise revenue estimate to $217M from $148M; EPS of $0.23 from LPS of ($0.66).2013: Raise revenue estimate to $311M from $250M; EPS of $2.52 from $1.41.
HIN Price at posting:
$2.62 Sentiment: Buy Disclosure: Held
