In a research report published Tuesday, Canaccord Genuity analyst William Plovanic maintained a Buy rating on shares of EnteroMedics Inc (NASDAQ:ETRM), while reducing the price target to $2,50 (from $4.00), which implies an upside of 629% from current levels. The decreased price target reflects the completion of a $16 million public offering of common stock and warrants that was announced earlier this month.
Plovanic noted, “We believe the proceeds from the offering provide EnteroMedics with the necessary capital to commercialize its novel VBloc Maestro System over the next 12 months. Net, net we look for additional progress over 2015 and into 2016 as centers are certified, physicians are trained, and initial coverage success is gained with the payor community.” The analyst added, “Our price target is based on a 10x multiple applied to our C2020 revenue estimate of $143.0M discounted back at 25% per year.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst William Plovanic has a total average return of 14.7% and a 63.4% success rate. Plovanic has a -5.9% average return when recommending ETRM, and is ranked #113 out of 3711 analysts.