Piper Jaffray Maintains Underweight Rating On KCI

Piper Jaffray has issued a report reiterating an Underweight Rating on Kinetic Concepts KCI. According to the report, "Tomorrow's meeting at CMS regarding Competitive Bidding, Round 2 in our view has three potential outcomes worth noting, two of which could potentially drive volatility for KCI. First, the most likely outcome is that Negative Pressure Wound Therapy (NPWT) will be included in the second round of competitive bidding, with potential impact to KCI's business beginning in 2013, in-line with the management's expectation. A delay of Round 2 or exclusion of NPWT would obviously be positive for the stock. Conversely, an accelerated timeline for Round 2, with an earlier impact on the company would be a negative." KCI has a $46 Price Target and closed on Friday at $54.97 a share.