In a research report released on Tuesday, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Cytosorbents Corp (NASDAQ:CTSO) with a $12 price target, which represents a potential upside of 47% from where the stock is currently trading.

Ramakanth noted, “We adjusted our financial model to account for the 3Q14 financials and the reverse stock split. Given the potential for continued growth in CytoSorb sales, we maintain our Buy rating and project a new 12-month price target of $12.00 per diluted share, up from our pre-split price target of $1.00. We derived our price target based on the average of two valuation methods: 1) price-sales multiple using 8x 2025 sales estimate discounted 12%; and 2) discount cash flow analysis using a 2% terminal growth rate and discounting 2025 free cash flow estimate at a 12% discount rate.”

Furthermore the analyst said, “At the end of 2014, CytoSorbents submitted an Investigational Device Exemption (IDE) application to the US Food and Drug Administration (FDA) to evaluate the utility of CytoSorb during cardiac surgeries. Pending FDA approval, management could initiate a pivotal clinical study in the US before the end of 1Q15. At $110 billion, the US medical devices market is by far the largest in the world, and entry into the US market would represent a milestone for the commercialization of CytoSorb.”

CytoSorbents Corporation, a development stage company, is engaged in the research, development, and commercialization of medical devices with its platform blood purification technology incorporating a proprietary adsorbent polymer technology.