Senseonics (SENS) Bull Lowers Price Target Post Recent Financing


Shares of medical technology firm Senseonics (NYSE American:SENS) dipped nearly 12% last week, following the announcement of equity offering that will dilute current investors but help shore up the company’s balance sheet. Specifically, Senseonics raised~$149.5 million in gross proceeds via the issuance of 38.1 million shares at a price of $3.93 a share.

In reaction, Canaccord analyst Kyle Rose lowered his price target on SENS stock to $5.00 (from 6.00), while reiterating a Buy rating on the stock. The updated target implies a potential upside of 14% from where the stock is currently trading.

Rose commented, “From a timing perspective, the financing is slightly earlier than we had modeled (Q4/18) although broadly in line with management’s recent commentary regarding the potential for a near-term financing event to strengthen the balance sheet to support US commercialization efforts. Additionally, the financing is much larger ($150M vs $50M) and more dilutive (38M shares vs 10M) than we had previously modeled; however, we believe it largely takes all financing risk off the table until 2020 (when we model an additional $50M raise). We view the deal positively as it provides Senseonics with ample capital to invest in the US business ahead of this summer’s Eversense launch.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Kyle Rose has a yearly average return of 13.0% and a 58.4% success rate. Rose has a 16.1% average return when recommending SENS, and is ranked #377 out of 4825 analysts.

Senseonics is without question a Wall Street favorite, considering TipRanks analytics indicate SENS as a Strong Buy. Out of 5 analysts polled in the last 3 months, all 5 are bullish on Senseonics stock. With a return potential of nearly 48%, the stock’s consensus target price stands at $6.10.

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. 

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