Roth Capital Cuts Enteromedics Inc. Price Target To Reflect More Conservative Outlook


Roth Capital’s healthcare analyst Chris Lewis weighed in today with a research report on Enteromedics Inc. (NASDAQ:ETRM), reiterating a Buy rating and reducing the price target to $2.25 (from $3.00), which still implies an upside of 92% from current levels.

Lewis commented: “With FDA approval in hand, ETRM has begun implementing its U.S. controlled commercial launch with a goal to have 20-25 implanting centers by end of 2015. Based on our channel checks and the company’s dialogue, we believe Vbloc is garnering high levels of interest from patients and bariatric surgeons. That said, ETRM will need to continue to expand third party reimbursement and execute in the self-pay market to drive procedure volume over the coming years.”

Furthermore, “We maintain our Buy rating and continue to be positive on ETRM’s technology and long-term market opportunity. We have lowered our target price of $2.25, from $3, as a result of our more conservative forward revenue outlook and the dilution from the ATM drawdown. Our $2.25 target price implies ~8x our 2018 revenue projection, discounted back to 2015 at 15% per year, on a fully diluted basis.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Lewis has a total average return of 1.4% and a 54.7% success rate. Lewis has a -13.4% average return when recommending ETRM, and is ranked #1817 out of 3479 analysts.