UPDATE: Roth Capital Reiterates Bullish Stance On Enteromedics Following FDA Approval
Before the market opened Tuesday, Roth Capital analyst Chris Lewis reiterated a Buy rating on Enteromedics (NASDAQ:ETRM) with a $3 price target, which represents a potential upside of 114% from where the stock is currently trading. The report follows the news that the FDA has approved the company’s Maestro System for the treatment of obesity, marking the first new medical device to be approved by the Agency for obesity in over a decade.
Lewis noted, “We view this as a transformative milestone for ETRM as it evolves from a largely regulatory focused company to one of commercialization. We expect FDA approval could potentially accelerate ETRM’s (1) strategic partnership discussions and (2) International reimbursement and commercial developments, particularly in Australia and targeted European markets.”
Furthermore the analyst said, “We believe ETRM offers a less invasive and safer, yet effective, treatment that can provide a needed “tool in the toolbox” to address a large gap within the obesity treatment paradigm. Maestro’s proven safety profile and lack of required anatomic changes, particularly versus the current bariatric surgical options (or lack thereof), supports the device’s favorable risk-benefit profile and long-term commercial adoption potential, in our opinion.”
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 6.4% and a 62.7% success rate. Lewis has a 0.6% average return when recommending ETRM, and is ranked #797 out of 3426 analysts.