Piper says competitive process could materialize for ShockWave

Piper Sandler analyst Adam Maeder says the Wall Street Journal’s report of potential takeover interest reaffirms the view that ShockWave Medical (SWAV) is an “excellent strategic asset that would fit well within a larger company.” The firm also believes ShockWave is well positioned for continued success as a standalone entity. Piper thinks a potential acquisition by Johnson & Johnson (JNJ) has some strategic merit. However, it believes any acquirer would need to pay a sizable takeout multiple to consummate a deal. Piper views Medtronic (MDT) and Boston Scientific (BSX) as more natural strategic fits than Johnson & Johnson for ShockWave given the companies’ existing broad focus in interventional cardiology and peripheral vascular. As such, the firm would not be surprised to see a competitive process materialize for ShockWave.