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Fly News Breaks for February 12, 2020
ABMD
Feb 12, 2020 | 05:10 EDT
While he still worries that Abiomed's revenue growth numbers for fiscal 2021 are too high, Piper Sandler analyst Matt O'Brien likes the stock's setup from a risk/reward perspective for investors who can look out 12 months and beyond. Given the growth in the transcatheter aortic valve replacement market, the analyst thought most clinicians were familiar with large bore access but was surprised to learn that nearly 40% of high volume Impella centers are not TAVR sites. As such, training and experience with Impella are critical and there is clear evidence that the latter results in a meaningful reduction in vascular bleeding issues, O'Brien tells investors in a research note. Further, the approval of Abiomed's expandable sheath expected in a few months should further reduce bleeding complications, says the analyst. He keeps an Overweight rating on the shares with a $240 price target.
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