BTIG Thinks Obalon Therapeutics Inc’s Stock is Going to Recover


In a report released yesterday, Sean Lavin from BTIG maintained a Buy rating on Obalon Therapeutics Inc (OBLN), with a price target of $3. The company’s shares closed yesterday at $1.99, close to its 52-week low of $1.46.

Lavin commented:

“Our PT To $3 (from $3.50) g Forecasts And Our PT to $3 (From $3.50); Downside OBLN reported Q3 revenue of $3M above Street estimates of $2.5M and our more aggressive Street estimate of $2.7M. Reorders continue to drive sequential improvement in the U.S. and now comprise 79% of U.S. sales vs. 64% last quarter. The revenue beat was the one positive in the quarter as the company intimated a potential end to the existing agreement with Sono Bello (Private) and confirmed a hiccup in the FDA approval process for the Navigation system. Additionally, the company announced the transition in the CEO role slated for the beginning of 2019.”

According to TipRanks.com, Lavin is a 5-star analyst with an average return of 12.2% and a 61.1% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.

Obalon Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $3.40.

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The company has a one-year high of $8.80 and a one-year low of $1.46. Currently, Obalon Therapeutics Inc has an average volume of 153.3K.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OBLN in relation to earlier this year.

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Obalon Therapeutics, Inc. focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. Its product includes medical balloon technology for weight loss therapy which consists of a capsule containing a balloon that is swallowed and then remotely inflated.

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