Shares of medical device maker Silk Road Medical (NASDAQ:SILK) are down nearly 24% at the time of writing today on concerns after the Centers for Medicare & Medicaid Services (CMS) provided a draft guideline that ‘Percutaneous Transluminal Angioplasty (PTA) of the Carotid Artery concurrent with Stenting’ is justified and required with the placement of an FDA approved carotid stent with a protection device that is also FDA approved.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Consequently, JP Morgan’s Robbie Marcus has lowered the rating on SILK to a Hold from a Buy while also lowering the price target to $28 from $50. The proposed action from CMS expands stenting coverage to standard surgical risk patients as well as high-risk patients. It also does away with facility standards and necessary approvals which, “Places a difficult overhang” on SILK stock according to Marcus.
As a result of this development, investor confidence in the stock is taking a hit today as uncertainty around the revenue of the company is heightened. Today’s price decline comes on top of a 34.7% drop in SILK shares year-to-date.
Overall, the Street has a $44.25 consensus price target on SILK alongside a Moderate Buy consensus rating. Short interest in the stock currently stands at nearly 9%.
Read full Disclosure
