Stifel downgraded Corindus Vascular Robotics (NYSE AMER:CVRS) to “hold” from “buy” and slashed its price target to $1 from $3 after “disappointing” first half results and now-lower 2018-2020 sales projects.
Shares of Corindus was quoted at 90 cents, down 15 cents, at midday on Aug. 8.
“While we acknowledge early commercialization stories – particularly those that involve meaningful capital outlays and treatment-paradigm changing technologies – are never linear, it is now is clear to us that the momentum that Corindus seemed to possess following impressive fourth quarter 2017 results has not visibly sustained itself through the first half of 2018,” writes analyst Rick Wise.
“While the second half of 2018 should arguably be stronger and the combined market opportunities for CorPath GRX remain substantial, we are less confident today in our ability to model the company’s near-to-medium-term sales trajectory,” he added.
Combined with the need to raise additional capital to support long-term growth, “it seems prudent to move to the sidelines and await more visible, tangible signs of positive commercial execution,” Mr. Wise said.
