H.C. Wainwright Reiterates Buy On Mela Sciences As It Names New President And CEO
In a research report sent to investors today, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy rating on Mela Sciences (NASDAQ:MELA) with a $4.50 price target, as the company announced that the Board has elected one of their members, Michael R. Stewart, as the company’s next President and Chief Executive Officer.
Ramakanth observed, “Based on our conversation with the in-coming CEO, we feel confident that the new strategy Ms. Crane executed for MELA should continue. Mr. Stewart is well aware of the marketing challenges in the dermatology market where a product does not have reimbursement. He has experience working with some of the key opinion leaders that could use MelaFind in their clinics as it is the same clinical dermatology physician population that operate both the devices.”
The analyst continued, “This considerable overlap in the market makes us believe that he would continue executing the strategy in place. His experience with obtaining a CPT code within the dermatology market and navigating the different market forces to make XTRAC a commercially viable product also gives us confidence that he would be able to execute a strong commercial plan for MelaFind. Note that, according to the latest SEC documents, XTRAC related sales have grown from nearly $10.8 million during the first nine months of 2013 to approximately $16.0 million during the first nine months of 2014.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Swayampakula Ramakanth has a total average return of -36.4% and a 0.0% success rate. Ramakanth has a -18.7% average return when recommending MELA, and is ranked #3362 out of 3377 analysts.