Dmitry Vinogradov
Glaukos Corporation (NYSE:GKOS) traded lower on Wednesday after Citi downgraded the glaucoma product maker to neutral from buy as part of a review of its U.S. MedTech coverage ahead of Q2 2024 results.
Analyst Joanne Wuensch argued that Glaukos (GKOS), which has climbed more than 50% this year, already indicated elevated expectations on its eye disorder therapy iDose in terms of a successful market rollout and upside potential.
“We believe these expectations are well in the stock, and we are stepping aside on our rating given the tremendous run it has had over the past 18 months,” Wuensch wrote. However, despite the downgrade, the analyst raised her price target on GKOS to $132 from $130 per share.
Elsewhere, Citi opened a positive catalyst watch on the insulin pump maker Tandem Diabetes (NASDAQ:TNDM), citing a recent pullback in its shares, an encouraging Q2 2024 print, and its newly launched Mobi automated insulin delivery system.
“Given the recent pullback in the stock and expectations for a beat and raise with the 2Q24 print, we are opening a 30-day positive catalyst watch,” Wuensch wrote with her Buy rating and $57 per share target on TNDM unchanged.
In contrast, Wuensch opened a negative catalyst watch on Intuitive Surgical (NASDAQ:ISRG), indicating an overly high level of excitement about its next-generation robotic system, the Da Vinci 5.
“While we believe that ISRG will at least deliver on expectations and potentially above it is possible that the da Vinci 5 excitement has risen too far too fast which may lead to a weak post-print stock move,” Wuensch wrote.
She kept her buy rating while raising 12-month price target on ISRG to $512 from $462 per share. Ahead of Q2 results, Citi’s top picks in the MedTech space include its buy-rated stocks, Boston Scientific (BSX), GE HealthCare (GEHC), and Insulet Corporation (PODD).