UPDATE: Credit Suisse Upgrades Thoratec On Higher Near-Term Cost Assumptions

In a report published Tuesday, Credit Suisse analyst Bruce Nudell upgraded the rating on Thoratec Corporation (NASDAQ: THOR) from Neutral to Outperform, and raised the price target from $27.00 to $35.00.

In the report, Credit Suisse noted, “We're maintaining our 2014 THOR estimates but lowering our 2015 THOR EPS estimate to $1.12 from $1.29 on higher COGS, opex & tax rate assumptions (2015 sales estimates largely unchanged) given our view that THOR is likely to spend aggressively to fund R&D & commercial endeavors over the next 12 months despite flat expected sales in 2015. Despite our lowered 2015 EPS estimates, we're leaving our out year sales & cost assumptions mostly unchanged and raising our DCF-based price target to $35 from $27 on a higher assumed terminal growth rate.”

Thoratec closed on Monday at $29.20.