Roth Capital Maintains Buy On Enteromedics Following CE Mark Expansion
In a research report issued today, Roth Capital analyst Chris Lewis maintained a Buy rating on Enteromedics (NASDAQ:ETRM) with a $5 price target, following today’s news that the company’s CE Mark for the Maestro® Rechargeable (RC) System for obesity was expanded to include the management of Type 2 diabetes mellitus through improved glycemic control.
Lewis observed, “While we don’t expect the expanded label to significantly accelerate ETRM’s currently limited European commercial activities in the near-term, we believe the expanded indication reaffirms the clinical utility of ETRM’s therapy for obesity and related comorbidities, and perhaps represents a positive indication when analyzing ETRM’s FDA approval likelihood.”
The analyst continued, “ETRM has limited to no commercial activity in Europe at this point, so we don’t expect the expanded label to accelerate adoption or sales in the near-term. However, we believe the news reaffirms the clinical utility of ETRM’s therapy not only as a treatment for obesity, but also for the equally important obesity-related comorbidities including Type 2 diabetes and hypertension.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Lewis has a total average return of -12.3% and a 29.0% success rate. Lewis has a -22.5% average return when recommending ETRM, and is ranked #3256 out of 3309 analysts.