UPDATE: Piper Jaffray Upgrades Kinetic Concepts to Neutral

Piper Jaffray is out with its report today on Kinetic Concepts KCI, upgrading KCI from Underweight to Neutral. In a note to clients, Piper Jaffray writes, "KCI delivered mixed top line performance and came in below expectations on the bottom line, despite a full-quarter benefit from the elimination of Wake Forest royalty expense. Strength in EMEA AHS sales, FX and North American TSS capital sales were offset by weakness in North American AHS (a.k.a. VAC), LifeCell and EMEA rental revenues. That said, we expect stock performance to track the prospective deal price of $68.50 and as a result we are upgrading the stock from Underweight to Neutral." Piper Jaffray raises its PT on KCI from $52 to $68.50. Shares of KCI closed Tuesday at $67.95.