Oppenheimer Thinks ConforMIS’s Stock is Going to Recover


In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on ConforMIS (CFMS), with a price target of $2.50. The company’s shares closed yesterday at $0.50, close to its 52-week low of $0.42.

Lichtman commented:

“Yesterday, CFMS announced strategic actions aimed at achieving profitability and cash flow break-even in 2021. Aspects of the initiatives include sharpened focus on new product developments, cost optimization (expense management/10% workforce reduction), international expansion to offset Germany weakness, and debt reduction. Management provided specific FY19 financials—operating expense is expected at $69M vs our FY18 estimate of ~$79.5M; capex at $3.5M vs $4M FY18E; debt is reduced by $15M from $30M; cash usage (excl. financing activities) is expected < $4M/quarter vs. $10M in FY18E. Overall, these are necessary steps by management to realign the organization, given recent challenging top-line performance. While costs/cash burn are reduced, sales/key pipeline efforts (led by iHip full launch 2H19E) remain on track. No change to our 2019 sales forecast."

According to TipRanks.com, Lichtman has 0 stars on 0-5 star ranking scale with an average return of -6.6% and a 46.0% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Zimmer Biomet Holdings, and Motus Gi Holdings Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for ConforMIS with a $2.83 average price target.

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The company has a one-year high of $2.72 and a one-year low of $0.42. Currently, ConforMIS has an average volume of 373.5K.

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ConforMIS, Inc. is a holding company, which engages in the development, manufacture, and sale of joint replacement implants. Its products include iTotal, iUni and iDuo, and iJig Instrumentation. The company was founded Philipp Lang in 2004 and is headquartered in Bedford, MA.

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