CSII - Cardiovascular Systems cut to Hold at Needham noting aggressive outlook

Competitive headwinds and concerns over reimbursement, have triggered another downgrade for Cardiovascular Systems (CSII -1.7%) on Wall Street. This time, Needham has cut its recommendation on the stock to Hold from Buy arguing that the company’s recent released financials for first quarter of fiscal 2022 went against the firm’s bullish view. "F1Q22 results invalidated our thesis that any competitive impact would be offset by increased sales of the company's peripheral interventional support devices (ISDs),” the analyst Mike Matson wrote. The rising pressure on reimbursements expected in 2022 at the office-based lab (OBL) setting will keep intensifying through 2025, Matson argues. Noting that the company’s guidance for first half of fiscal 2022 seemed “too high,” the analyst warns on potential for lower-than-expected financials and/or a guidance cut to hurt EV/Sales multiple which the analyst says is cheaper compared to those of rivals. A few days ago, Guggenheim cited similar reasons in

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Cardiovascular Systems cut to Hold at Needham noting aggressive outlook