In a research report released Wednesday, Maxim analyst Jason Kolbert reiterated a Buy rating on shares of Amedica Corporation (NASDAQ:AMDA), with a $5.00 price target, following discussion with the company’s management regarding recent FDA decisions on two products. Shares of Amedica are currently trading at $0.70, down $0.033 or -4.50%.
Kolbert wrote, “The approval of the pedical screw kit is positive as it supports the existing revenue base and that is critical to offsetting expenses while the company moves forward in Hips & Knees. The delay of the spinal composite device (not factored into our model) for us is a “non-issue”. The device is unique in that it has a composite area (versus a traditional donut hole). Regulators may require some level of empty space while they evaluate the benefits of this new approach. We view the product as incremental and in no way, shape or form having bearing (excuse the pun) on our real goals: Silica Nitride Hips & Knees.”
“Growth in spine remains important as it acts as an engine to offset expense as the company looks to the dental, knees & hip markets as the next segment of growth,” the analyst concludes.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -14.9% and a 28% success rate. Kolbert has a 0.6% average return when recommending AMDA, and is ranked #4154 out of 4240 analysts.