Yesterday afternoon, Senseonics (NYSE American:SENS) announced that the FDA has approved its Premarket Approval (PMA) application to market the company’s Eversense® Continuous Glucose Monitoring (CGM) System to people with diabetes in the US. The system is the first and only CGM system to feature an implantable glucose sensor and provide long-term continuous monitoring for up to three months.
Although most investors expected this approval, it always removes a risk to have approval in hand. As such, Canaccord analyst Kyle Rose reiterates a Buy rating on Senseonics shares, while raising the price target to $6.00 (from $5.00), which represents a potential upside of 20% from where the stock is currently trading.
Rose commented, “Approval comes in line with our expectations for a mid-2018 approval and just in time for a major push at this year’s ADA conference that starts tomorrow in Orlando […] We will be attending the ADA meeting this weekend and expect to get incremental color on commercialization plans and importantly a pulse on the market’s excitement for the upcoming Eversense launch.”
“We have modestly adjusted our estimates to account for a Q3/18 launch. We also note management reiterated 2018 revenue guidance of $18M-$20M inclusive of modest contributions from the US in H2/18, continued momentum OUS, slightly offset by the OUS transition from 90-day to 180-day sensors,” the analyst added.
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 16.4% and a 61% success rate. Rose has a 31.2% average return when recommending SENS, and is ranked #287 out of 4829 analysts.
Senseonics has one of the best ratings by the Street. TipRanks reveals that SENS has a Strong Buy analyst consensus rating with 6 back-to-back buy ratings in the last three months. Meanwhile the average analyst price target of $5.90 suggests the stock still has upside potential of just over 26% from the current share price for the next 12 months.