Cantor analyst Caroline Corner initiated coverage on shares of Alimera Sciences (NASDAQ:ALIM) with a Buy rating and a $10 price target, which represents a potential upside of 72% from where the stock is currently trading.

Corner wrote, “We are initiating coverage of ALIM in front of the company’s launch into the U.S. market. We think the company’s product, ILUVIEN, stands well-positioned for entry into the market, with proven efficacy and safety. Our price target of $10.00 is based on applying a 4.5x market cap/rev multiple to our estimated 2020 revenues of $527.0M, discounted 30%.”

The analyst added, “The company has attained regulatory approvals in the U.S. and in 13 European countries to date. Sales into the U.K. market are going well, with a 30% growth rate reported. We expect a launch into the U.S. market in 1Q:15. We think success within the U.S. market will be critical to drive share price accretion.”

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