Surmodics upgraded to Buy at Needham on positive SurVeil developments

Needham upgraded Surmodics to Buy from Hold with a $36 price target. Several positive developments indicate that the company’s SurVeil drug-coated balloon is likely to be approved by the FDA sooner than previously thought, the analyst tells investors in a research note. The FDA did not require Surmodics to conduct additional testing, and the company was able to submit an amended PMA application in May that it believes addresses the FDA’s concerns, Needham states. The firm expects SurVeil to be a meaningful growth driver and to help bridge the gap until the Sublime and Pounce products materially contribute to the company’s growth.