Wells Fargo downgrades Thoratec Corp. (Nasdaq: THOR) from Outperform to Market Perform.
Valuation range lowered to $30-$31 from $33-$34.
Wells analyst says, " We are downgrading THOR to Market Perform because we believe that Street expectations for the uptake of the HeartMate II for destination therapy (DT) are too high and that the HeartWare (Nasdaq: HTWR) overhang will not dissipate until we see the results of HeartWare’s bridge-to-transplant (BTT) study in early 2011. We model 2010 and 2011 sales of $419MM (+15%) and $463MM (+11%), respectively, versus consensus of $430MM (+18%) and $517MM (+20%). Given THOR’s premium valuation, we believe that the company will need to beat Street estimates for the stock to continue to work."