Canaccord Genuity analyst Kyle Rose maintained a Buy rating on Obalon Therapeutics Inc (NASDAQ: OBLN) today and set a price target of $2.50. The company’s shares opened today at $2, close to its 52-week low of $1.46.
Rose said:
“We maintain our BUY rating following today’s announcement of a planned $10M private placement. Management noted the $10M investment includes both new and existing investors — in particular VC shareholders Domain and InterWest — as well as board members and management. Obalon will issue 5.5M shares at $1.82 per share, and the deal is expected to close on Monday, August 27. We will look to update our model and valuation for the most recent financing post the close of the deal. We view the deal positively given it bolsters the balance sheet at a time when the company is shifting its near-term (H2/18) commercial strategy to refocus their sales force on growing utilization in current accounts as they realize the importance of their navigation system (not expected until Q119) to efficiently open broader accounts.”
According to TipRanks.com, Rose is a 5-star analyst with an average return of 14.8% and a 56.8% success rate. Rose covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Smith & Nephew Snats, and Stryker Corporation.
Obalon Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $2.38.
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The company has a one-year high of $10.40 and a one-year low of $1.46. Currently, Obalon Therapeutics Inc has an average volume of 107.2K.
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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.
