Roth Capital Reaffirms Buy On EnteroMedics Ahead Of 2Q14 Results; Keeps $5 PT


In a research note published yesterday, Roth Capital analyst Chris Lewis reaffirmed a Buy rating on EnteroMedics Inc. (ETRM) with a $5 price target ahead of the company’s upcoming second-quarter results, which is set to take place on August 7.

Lewis wrote, “We believe the call, which will be the first for the company since its positive FDA panel review in June, should provide some much needed color from ETRM’s management team regarding its panel reaction and takeaways, and outlook for FDA approval. With the positive risk-benefit vote (typically considered the determining FDA approval vote), we continue to anticipate the FDA will follow the panel’s recommendation and approve ETRM’s Maestro System for the treatment of morbid obesity”.

The analyst added, “We do not expect ETRM to generate any revenue during the period. We expect 2Q operating expenses of $6.7 million, up from $6.1 million in 2Q13 and $6.6 million in the prior quarter. Our 2Q net loss per share projection sits at ($0.10), in-line with the Street”.

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 -6.5% and a 45% success rate. Lewis has a -31.7% average return when recommending ETRM, and is ranked #2990 out of 3205 analysts.

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