Markets & Finance

Piper Jaffray Cuts Mentor to Market Perform

Piper Jaffray cut its opinion on Mentor (MNT) to market perform from outperform.

Analyst Thomas Gunderson said the revenue shortfall was due to a slowdown in breast augmentations in the anticipation of silicone approval. He noted that revenue is now expected to come in between $112 million and $115 million vs. his consensus $121 million estimate. He says the unresolved worry is that the shortfall is not just a pause button waiting for silicone breast implants, but a demand decline based on deteriorating consumer confidence. He's moving to the sidelines to see if aesthetic surgery (breast implants) takes a nap while consumers re-think their shrinking discretionary income. He cut his $1.76 fiscal year 2006 (ending March) earnings per share estimate to $1.57.

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