WBB Upgrades Cyberonics to Strong Buy, Reiterates PT of $38

WBB Securities upgraded its rating on Cyberonics CYBX to Strong Buy. At the same time, WBB left its price target on the company's stock unchanged at $38. In a research report published today, WBB stressed Cyberonics' strong position in the epilepsy treatment market for its decision. In the report, WBB states, "Today, 60,000-plus VNS systems have been implanted to treat epilepsy. With increasing numbers of new systems being implanted, replacement of the generator will become a growing revenue stream as batteries wear out. Japan's recovery from the recent earthquake will improve prospects to treat new patients, as will opportunities CYBX identified in China, Brazil and India. Based on recent price depreciation and our positive assessment of the company's ability to improve sales growth in international markets, we are upgrading CYBX to a Strong Buy rating and reiterating our 12-month price target of $38.00." On Thursday, Cyberonics closed the day at $29.05.