UPDATE: Goldman Sachs Upgrades Thoratec on Good Upside Potential
11:29a ET October 14, 2013 (Benzinga)
In a report published Monday, Goldman Sachs analyst David H. Roman upgraded the rating on Thoratec Corporation (NASDAQ: THOR) from Neutral to Buy, and raised the price target from $40.00 to $46.00.
In the report, Goldman Sachs noted, â€œWe are upgrading shares of Thoratec Corp. (THOR) to Buy from Neutral with a 12-month price target of $46, representing 20% upside potential. Following several years of underperformance (THOR shares are -2,900bp vs. the Russell 2000 since January 2010), we see clarity emerging on top-line growth with a path toward better results in outer years. Over the next several quarters, we see the Thoratec story evolving from one of concerns around near-term numbers and market share dynamics (given new competition from Neutral-rated HeartWare) to potential sources of positive earnings revisions (new product launches, geographic expansion). At this point, we see many of our concerns raised earlier this year as having been addressed and have greater confidence in both the balance of 2013 and the outer years given recent results, channel feedback, and consensus expectations.â€