Shockwave Medical Stock Jumps On Q1 Revenue Growth, Analyst Upgrades

Shockwave Medical Inc SWAV first-quarter FY21 sales more than double to $31.9 million beating the Wall Street consensus of $29.9 million.

The growth was primarily driven by the launch of the coronary product, Shockwave C, in the U.S. in February and increased adoption of Shockwave products.

The company posted a Q1 EPS loss of ($0.68), which missed the analyst consensus estimate of ($0.45) loss. The loss was wider than ($0.59) reported a year ago.

Guidance: Shockwave Medical projects FY revenue of $195 million to $205 million, well above the consensus of $158.9 million.

Analyst Upgrade: After strong Q1 earnings, analysts have upgraded the stock and raised the target price for the company.

Wells Fargo analyst Lawrence Biegelsen raised the price target to $161 from $151 and kept an Overweight rating on the shares. He notes the management's confidence in issuing a "robust" initial 2021 outlook of $195 million - $205 million in sales for the full year versus consensus at $159M and his estimate of $170M.

BofA analyst Bob Hopkins upgraded SWAV to Buy from Neutral with an unchanged price target of $180. Following the quarterly report, he has raised his 2021 and 2022 revenue estimates to $200M and $260M, respectively, but noted that he sees the potential for "significant upside" to his 2022 forecast.

He thinks Shockwave will be in over 750 accounts in the U.S. by the beginning of 2022, which will likely make up over 70% of U.S. volumes.

Piper Sandler analyst Adam Maeder upgraded the stock to Overweight from Neutral with a price target of $165, up from $134.

He "did not envision such robust uptake in the U.S. market out-of-the-gate" for the company's coronary launch. He is now feeling more comfortable about Shockwave's ability to meet and exceed the Street's "lofty expectations.

"Shockwave is "clicking on all cylinders," and the shares are poised to go higher, says Maeder.

Price Action: SWAV shares gained 18.7% at $160 during the market trading session on the last check Tuesday.