Senseonics (NYSE American:SENS) shares fell as much as 8.5% today, following the news that the FDA has approved the company’s‘ Eversense continuous glucose monitor (CGM) for use in people ages 18 and older with diabetes. FDA approvals are supposed to make companies worth more, not less, but this seems to simply be a case of “sell the news,” given the massive run-up shares of Senseonics have had over the last two months as investors anticipated an approval.
As a sign of confidence in Senseonics, BTIG analyst Sean Lavin reiterates a Buy rating on the diabetes device maker’s stock, while raising the price target to $6.00 (from $5.00), which implies an upside of 22% from current levels. (To watch Lavin’s track record, click here)
Lavin commented, ‘Senseonics had hoped for approval before the American Diabetes Association meeting which kicks off in Orlando tomorrow. Senseonics will now be able to market to physicians at this meeting and the company also plans to launch a mobile clinic at this event that will subsequently travel around the country.”
“The company is working with multiple insurers and expects some U.S. coverage this year with more being brought on board in 2019. This may limit revenue near-term but we feel insurers see CGM as a cost-saver as it reduces complications and we think SENS will receive routine coverage over the next two years,” the analyst added.
How does Lavin’s bullish bet weigh in against the Street? It appears the analyst is not the only one enthusiastic on Senseonics’ prospects, with TipRanks analytics demonstrating SENS as a Strong Buy. Out of 6 analysts polled in the last 3 months, all 6 are bullish on Senseonics stock. With a return potential of nearly 20%, the stock’s consensus target price stands at $5.90.
Senseonics is a medical technology company focused on the design, development and commercialization of glucose monitoring products designed to help people with diabetes confidently live their lives with ease. Senseonics’ first generation CGM system, Eversense, includes a small sensor, smart transmitter and mobile application.