In a research report published Monday, Rodman & Renshaw analyst Amit Dayal initiated coverage on shares of Second Sight Medical Products Inc (NASDAQ:EYES) with a Buy rating and a 12-month price target of $21, which represents a potential upside of 44% from where the stock is currently trading.
Dayal wrote, “Second Sight is a pioneer in commercializing implantable prosthetic devices that restore functional vision to blind patients. We view EYES as an attractive play in the human augmentation theme, where developments in the fields of technology, biotechnology, and neuroscience are now converging to create a new generation of solutions that address complicated impairments.”
Furthermore, “From a near-term perspective it appears that EYES is trading at a premium market cap of $485M (P/ S multiple of 38x to our 2016 revenue estimate), However, in taking a longer-term view, we believe there is significant growth ahead for the company that is protected by a substantial patent portfolio and market lead. In line with this, we are projecting revenues to grow at a CAGR of 50% till 2023 and believe the company can easily grow into its above average multiple.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Dayal has a total average return of -27.3% and a 20.0% success rate. Dayal is ranked #3616 out of 3689 analysts.