Monday, January 31, 2011

Thoratec's (NASDAQ:THOR) Weak Guidance, Pipeline Earns it Downgrade

Thoratec (NASDAQ:THOR) was downgraded by Canaccord on their weak guidance and product pipeline.

Canaccord notes, "Weak 2011 guidance last night came on the
heels of a disappointing discussion about its new product pipeline timelines two weeks ago – especially juxtaposed to Heartware's (Nasdaq:HTWR) – thus we now forecast THOR’s US VAD unit growth will decline 1% in 2012 upon HTWR’s HVAD launch. While THOR posted solid OUS growth in Q4, coupled with our continued belief THOR will significantly grow its DT volume in coming years, expected protracted share loss beginning in 2012 drives our lower top- and bottom-line estimates. We now model EPS CAGR of just 8% through 2013 vs. the comp group CAGR of 14%."

Canaccord Genuity downgraded Thoratec (THOR) from "Buy" to

"Hold." Thoratec closed Friday at $23.13, losing $3.00, or 11.48 percent. Canccord lowered their price target on Thoratic to $23.

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