TearLab: We Believe The Company Can Overcome Its Challenges With The Benefit Of Time, Says Canaccord
In a research note published today, Canaccord analyst Mark Massaro reiterated a Buy rating on TearLab Corp. (NASDAQ:TEAR) with an $8 price target ahead of the company’s analyst day.
Massaro wrote, “While TEAR has not executed anywhere near its potential in recent quarters, we believe the company can overcome its challenges with the benefit of time as it focuses on stabilizing its sales force, ramping customer utilization, and returning its focus on driving new placements. We expect the highlight of today’s analyst day will be TEAR’s new test platform. Given the recent reset in guidance, we think risk/reward at today’s levels is to the upside. We advise patience here.”
The analyst continued, “We believe TearLab is in the second inning of adoption to take its novel Osmolarity Test to the 50,000 combined ophthalmologists and optometrists in the United States. We are buyers of TEAR based on the long-term global potential of the Osmolarity Test (we estimate almost a $2 billion market opportunity); the allergy test (panel of tests) in its pipeline; and the overall tailwinds associated with the continued attention on the treatment of dry eye. Given the recent reset in guidance, we think risk/reward at today’s levels is to the upside.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Massaro has a total average return of -11.2% and a 25% success rate. Massaro is ranked #3087 out of 3311 analysts.