Bank Of America Raises Price Target On Thoratec To $39

According to Bank of America, Thoratec THOR reported a very strong Q2 last night with $111mm in revs (up 17% y/y) – nicely above the $104mm expected. Bank of America said that the most important indicator of future growth – unit sales of HM II – were up 21% in the US in Q2 and 20% OUS based primarily on faster market growth, although in the US THOR probably gained share. “If that moved to 75% share for THOR in 2015 and 20% mkt growth it would represent a material 40%+ increase to our current revenue assumptions for THOR. Alternatively, very clean believable data from HeartWare could cause our THOR estimates to fall materially.” Thoratec closed yesterday at $33.85.