Kyphon upgraded to "outperform"

04/05/04 - Piper Jaffray

NEW YORK, April 5 (New Ratings) – Analyst Mark J MulliKin of Piper Jaffray upgrades Kyphon Inc (KYPH) to "outperform." The target price is set to $31.

Shares of Kyphon, a company that develops medical balloon devices to assist in the management of fractures, are currently trading at $24.28.

According to Piper Jaffray’s research note published this morning, Kyphon has received the FDA clearance for the use of Kyph X HV-R in Kyphoplasty. The FDA clearance for broad labeling claims would enable the company to expand its market share through investments in patient and physician education, the analyst adds.

Piper Jaffray expects the company to aggressively market and promote the usage of bone cement in Kyphoplasty and to report improved returns over the next few years. The company has already started training its sales representatives for the promotion of the product, the analyst says. Piper Jaffray believes that Kyphon would record revenues of $190 million and $230 million for 2004 and 2005, respectively.

The EPS estimates for 2004 and 2005 are $0.42 and $0.60, respectively.

Piper Jaffray upgrades Kyphon Inc to "outperform."