Piper cuts Intersect ENT to neutral; PT to $17 from $30

Piper Jaffray downgraded Intersect ENT (NASDAQ:XENT) to “neutral” from “overweight” and slashed its price target to $17 from $30 after the company reported second quarter results and lowered its revenue guidance to flat growth for 2019. The stock closed at $20.13 on Aug. 1.

Intersect manufactures drug-delivery devices used by ear, nose and throat clinicians in the treatment of sinus infection.

“We are moving to the sidelines for now as we believe the turnaround of the business has low visibility at the moment and it will likely take longer than expected as is typical for a new management team,” writes analyst Matt O’Brien.

The company lowered its 2019 revenue guidance from $113-million to $117-million, or a 6% increase at the midpoint, down to flat growth of about $108.5-million posted for 2018.

Mr. O’Brien said that results from the company’s Sinuva implant for the treatment of nasal polyps could buoy sales in 2020 and beyond. The company received a preliminary CMS reimbursement J-code for Sinuva in April.