Thoratec Corp. Upgraded to “Outperform” by Credit Suisse (THOR)

Thoratec Corp. (NASDAQ:THOR) was upgraded by equities research analysts at Credit Suisse from a “neutral” rating to an “outperform” rating in a research note issued to investors on Friday, reports.

The analysts wrote, “We believe THOR can grow sales ~11% over the next 3-4 years despite encroachment from HTWR on its US market share. Our growth estimates assume steady LVAD share OUS-ex-Japan and market growth of ~14%, with an incremental ~$40M / year in sales in Japan by 2017 (Japan adds ~2% to our 2013-17 growth CAGR). Moreover, we forecast ~$30M in PHP sales by 2017, which adds another ~1% to our 2013-17 sales CAGR, helping to offset the US BTT share gains we forecast for HTWR in 2013 & DT share gains in 2016/17. As a result we are upgrading THOR to OP & raising our DCF-derived price target to $43 from $35 based on the assumption of higher out year estimates (due to lower assumed HTWR share) & a lower assumed WACC.”

Several other analysts have also recently commented on the stock. Analysts at Raymond James raised their price target on shares of Thoratec Corp. from $37.00 to $40.00 in a research note to investors on Friday, August 2nd. They now have an “outperform” rating on the stock. Separately, analysts at Barclays Capital reiterated an “overweight” rating on shares of Thoratec Corp. in a research note to investors on Thursday, August 1st. They now have a $43.00 price target on the stock. Finally, analysts at Northland Securities upgraded shares of Thoratec Corp. from a “market perform” rating to an “outperform” rating in a research note to investors on Thursday, August 1st. They now have a $42.00 price target on the stock, up previously from $35.00.

Seven analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $41.33.

Thoratec Corp. (NASDAQ:THOR) traded up 0.32% on Friday, hitting $37.32. Thoratec Corp. has a 1-year low of $29.91 and a 1-year high of $39.86. The stock’s 50-day moving average is currently $32.57. The company has a market cap of $2.150 billion and a price-to-earnings ratio of 42.91.

Thoratec Corp. (NASDAQ:THOR) last announced its earnings results on Wednesday, July 31st. The company reported $0.52 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.43 by $0.09. The company had revenue of $130.50 million for the quarter, compared to the consensus estimate of $121.51 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. The company’s quarterly revenue was up 10.0% on a year-over-year basis. Analysts expect that Thoratec Corp. will post $1.75 EPS for the current fiscal year.

Thoratec Corporation is engaged in mechanical circulatory support with a product portfolio to treat the range of clinical needs for advanced heart failure (NASDAQ:THOR) patients.

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