Citi Maintains Buy on Spectranetics (SPNC)

Citi is out with its report today on Spectranetics SPNC, maintaining Buy. In a note to clients, Citi writes, "Our investment thesis for Spectranetics, which is rated Buy/Speculative (1S), is as follows: (1) With 10 million patients with PAD in the US, but only 2 million diagnosed, the disease is largely under-recognized and under-treated. With companies such as FoxHollow leading the way in developing the market, we believe there is potential for this market to expand significantly beyond the 2 million patients today. (2) The combination of sales force increases and increased numbers of physicians trained each quarter should lead to growing product awareness and market share gains. (3) The company currently has two clinical trials that should enhance laser atherectomy credibility and visibility. (4) The new Turbo Booster guide catheter launched in July and opens the above-the-knee PAD market where only about 35% of Spectranetics' procedures are currently performed." Citi has an $8 PT on SPNC. Shares of SPNC closed Tuesday at $5.