LivaNova pullback on disappointing Q1 results overdone, says Piper Jaffray

Piper Jaffray analyst Matt O’Brien noted that LivaNova (LIVN) shares are trading down over 25% after the company preannounced disappointing Q1 revenues, which he views as overdone. At current levels, the stock reflects a “modest multiple” for the core business and “essentially nothing” to LivaNova’s pipeline, said O’Brien, who thinks the company’s pipeline opportunity in Treatment-Resistant Depression, or TRD, is significant. The company blamed its neuromodulation sales miss to the launch of a competitive drug product from GW Pharma (GWPH), but O’Brien believes this business should stabilize by the end of the year, he added. He maintains an Overweight rating on LivaNova shares with a price target of $120.
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