The chief executive’s retirement and a revenue warning from
Silk Road Medical
has turned one analyst team bearish on the medical devices company and sent the stock tumbling double-digits Wednesday.
Citi analysts led by Joanne Wuensch downgraded
Silk Road
(ticker: SILK) to Sell from Buy, cut their price target to $8 from $35, and lowered earnings and revenue estimates.
Shares were sinking 50% to $6.94 on Wednesday.
The company announced Tuesday that its chief executive officer, Erica Rogers, will retire “following the completion of a succession process,” and will continue in her roles as president and CEO until a successor is appointed.
Silk Road also posted preliminary third-quarter revenue that missed Wall Street’s expectations and reduced full-year revenue guidance to a range of $170 million to $174 million from a prior range of $180 million to $184 million.
There is still a need for Silk Road’s products, Citi analysts acknowledged, but “with the departure of the CEO and guidance update, there is little visibility into the business presently and we see limited room for stock appreciation and expect investors may capitulate after a difficult year for SILK.”
Write to Emily Dattilo at [email protected]
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