Canaccord starts ShockWave Medical at buy; PT $39


Canaccord Genuity initiated coverage of ShockWave Medical (NASDAQ:SWAV) with a “buy” rating and $39 price target. The stock closed at $33.47 on March 29.

Analyst Jason Mills writes that ShockWave’s technology – intravascular lithotripsy (IVL) – targets intravascular calcium: a huge target market that could be nearly $3-billion in the U.S. alone.

IVL is a novel platform targeting calcific peripheral and coronary artery disease, with a long-term shot on goal in aortic stenosis, he added. “We think IVL will change the paradigm in how intravascular calcium is addressed, not only gaining share from traditional tools, but also growing the total addressable market.”

Mr. Mils said IVL enhances outcomes, lowers treatment costs, especially in complex cases, and opens up endovascular treatment to a greater number of patients.

IVL has clinically demonstrated its unique ability to safely “crack” both intimal and medial calcium, he added. “In so doing, IVL enhances the therapeutic efficacy of concomitant technologies (e.g., drug-eluting stent in the coronary) and reduces complications common to other tools trying to deal with calcific disease (e.g., vessel recoil, restenosis, dissection, perforation), helping cut down on the need for re-interventions.”

Stephen Kilmer