USB Piper Jaffray downgraded drug-delivery devices makers Advanced Neuromodulation Systems (ANSI) and Cyberonics (CYBX) to outperform from strong buy based solely on valuation.
Analyst Thomas Gunderson says he had set a $45 target for ANSI in April based on 2003 EPS estimates, and ANSI has moved up near his target sooner than anticipated. He says ANSI shares have appreciated 24% year to date and are trading at 36 times his new $1.21 2004 EPS estimate.
In terms of CYBX, he had set a $25 target in November, 2002, and notes CYBX has moved considerably closer to his target sooner than he had thought. He says CYBX has appreciated 25% year to date.
He has a $48 price target for ANSI, and a $26 target for CYBX -- he thinks these target prices are aligned with more moderate outperformance to the market.