Shockwave Medical Inc (SWAV)

[Whalatane]

ShockWave Medical Upgraded by Morgan Stanley to Overweight From Equalweight, Boosts Price Target to $335 From $291
7:11 AM ET, 07/10/2023 - MT Newswires
07:11 AM EDT, 07/10/2023 (MT Newswires) -- ShockWave Medical (SWAV) received an investment rating upgrade on Monday to overweight from equalweight from Morgan Stanley, which said it expects a "solid improvement in reimbursement" for the medical technology company's intravascular lithotripsy treatment of atherosclerotic cardiovascular disease to result in Street growth expectations for 2024-2025 being "too low."

Morgan Stanley also raised its price target on ShockWave Medical's shares to $335 each from $291. This moves the target farther above the stock's Friday closing price of $261.77.

The upgrade comes as Morgan Stanley expects the US Centers for Medicare & Medicaid Services to propose "better outpatient reimbursement in the coming week ( my emphasis )" for ShockWave Medical's intravascular lithotripsy, or IVL. This technology uses sonic pressure waves to disrupt challenging calcified plaque.

Improved outpatient reimbursement would drive "a potential acceleration in penetration of SWAV's coronary IVL catheter and upside to Street expectations," Morgan Stanley's analysts said in a Monday note to clients.

Morgan Stanley also sees ShockWave Medical's short-term numbers as "encouraging," and highlighted that competition doesn't appear to be coming "anytime soon." Abbott (ABT) is also working on intravascular lithotripsy but Morgan Stanley's analysts noted Abbott's first-in-human trials have yet to begin and there are "no other clear peers in the market," the analysts noted.

ShockWave Medical has an average investment rating of outperform among analysts polled by Capital IQ, with price targets ranging from $165 to $335.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 270.21, Change: +8.44, Percent Change: +3.22
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