Zacks Investment Research downgraded shares of SurModics Inc. (SRDX) from NEUTRAL to UNDERPERFORM on November 29, 2013, with a target price of $22.00.
We are downgrading SurModics to Underperform following its disappointing performance in the final quarter of fiscal 2013. Though the company reported higher than expected earnings due to cost savings, revenues were below expectations hurt by below par hydrophilic coating revenues. The company's lackluster earnings guidance for fiscal 2014 is also disappointing. Moreover, the company reported lower than expected revenues as well as earnings in fiscal 2013. We have trimmed our estimates for fiscal 2014 in view of these negatives. Moreover, we believe that since royalties are a major source of revenues at SurModics, any royalty related setback like the discontinuation of Johnson & Johnson's Cypher stent will affect the top line significantly.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on SurModics Inc. (SRDX),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment