Boston, MA 10/13/2014 (wallstreetpr) – Thoratec Corporation (NASDAQ:THOR) has the scope to step up its execution to match its clinical progress, which the company was leading, Goldman Sachs Group Inc (NYSE:GS) believes.
The brokerage believes that the Thoratec Corporation (NASDAQ:THOR)’s CEO, Keith Grossman, has raised the interest level of the investors after the recent appointment with him. This came on the back of recent missteps of execution such as mixed quarterly results and lowered outlook.
Analyst David Roman believes that given the track record of Grossman on creating shareholders value, he said that there was a potential for a turn in the share performance of Thoratech. He expressed his confidence that the recently unveiled HeartMate III trials would be a share recapture or preservation opportunities for the company in the U.S., as well as, European Union.
Goldman Sachs Group Inc (NYSE:GS) said that the concern over the safety of the current products were pressuring market share. The brokerage sees enough promise in the pipeline of the company but held the view of Neutral rating since it waits for some clarity on the strategy of Grossman. This apart, the brokerage also expects risks in the outer year consensus expectations.
As far as HeartWare International Inc (NASDAQ:HTWR) in the left ventricular assist device or LVAD was concerned, analyst thinks that investors were placing too much weight on the share gains in the European Union. Aside from this, off-label use uptake besides the Bridgeto-Transplant market in the U.S. was also getting too much of weight.
The brokerage said that the next generation MVAD trial would unlikely to start till mid-2015 in the European Union and late next year in the U.S.
Analyst Roman does not see the follow-up action for the next two full years on follow up of ENDURANE data till April 2015. While acknowledging the near-term potential favorable surprise, analyst project %5, 17% and 26% lower revenue over the consensus. Therefore, the brokerage preferred to retain the rating of Sell.