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Abiomed in 2017: The Analysts’ View

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Abiomed’s financial performance

For the quarter ending March 31, 2017, Abiomed (ABMD) reported revenues close to $124.7 million, which represents a YoY (year-over-year) growth of about 30%. This was mainly driven by its increased adoption of Impella heart pumps like the Impella 2.5, Impella LD, Impella CP, Impella 5.0, and Impella RP on a global basis.

The overall patient utilization of the Impella devices rose 33% on a YoY basis, while the protected PCI (percutaneous coronary intervention) and emergent AMI cardiogenic shock indications grew YoY by 26% and 37%, respectively.

Abiomed also expects revenues from non-Impella devices to drop. The commercial success of the company thus lies in its ability to accurately identify emergent and elective PCI patients and convince hospitals that Impella devices are an effective and cost-optimal option.

Notably, the First Trust Health Care AlphaDEX Fund (FXH) has about 1.3% of its total portfolio in ABMD.

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Analysts’ recommendations for Abiomed

Of the nine analysts covering Abiomed in July 2017, six have rated the stock a “strong buy,” and two have rated it as a “buy.” One analyst has rated the company a “hold,” while none has rated it a “sell” or “strong sell.” Approximately 89% of analysts have given the company some form of “buy” recommendation.

By comparison, of the 19 analysts covering Abbott Laboratories (ABT) in July 2017, ~68% have rated the stock a “buy.” Approximately 41% of the 17 analysts covering Baxter International (BAX) have given it “buy” recommendations, and 58% of the 26 analysts covering Medtronic (MDT) have rated the stock a “buy.”

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