Surmodics price target lowered to $61 from $70 at Barrington

Barrington analyst Michael Petusky lowered the firm’s price target on Surmodics to $61 from $70 and keeps an Outperform rating on the shares after the company disclosed it had received a letter from the FDA indicating that its premarket application, or PMA for drug coated balloon SurVeil was not currently approvable. Based on his talks with management it appears that there is a path forward for SurVeil and it could likely include a relatively short animal trial, said Petusky, whose lower target reflects a reduced valuation for the company’s DCB program.