UPDATE: Bank of America Initiates Coverage On Cardiovascular Systems On Positive Outlook

In a report published Monday, Bank of America analyst Bob Hopkins initiated coverage on Cardiovascular Systems (NASDAQ: CSII) with a Buy rating and $38.00 price target.

In the report, Bank of America noted, “We are initiating coverage on CSII, maker of a differentiated atherectomy system for arterial plaque removal, with a Buy rating and a $38 PO. CSII is the fastest growing company in the $250mm peripheral atherectomy market and has recently entered the roughly $75 coronary atherectomy market.

"Both markets are underpenetrated in our view, and we believe CSII has the technology to expand both. Our PO assumes CSII can trade at a 5.0x CY2015E EV/sales multiple, (in-line to a slight premium to the peer group). We model 26% revenue CAGR for CSII over the next 3 years.”

Cardiovascular Systems closed on Friday at $29.05.