Looking for a reason to buy shares of Myomo Inc (NYSEAMERICAN:MYO)? How about four reasons, courtesy of Roth Capital analyst Scott Henry. Henry initiated coverage of Myomo’s stock with a Buy rating and price target of $9.00, which represents a potential upside of 112% from where the stock is currently trading. (To watch Henry’s track record, click here)
The analyst highlighted four reasons to support his bullish stance:
- The MyoPro addresses a large market – Henry estimates that MyoPro’s target market includes nearly 1,000,000 individuals with partial upper extremity paralysis in the U.S., caused by both central and peripheral nervous conditions (stroke, TBI, spinal cord injury, brachial plexus injury, MS, CP, etc.).
- Near-term growth – Henry believes that the MyoPro 2, launched in June, includes multiple enhancements that make the device commercial-ready. Furthermore, the analyst points out that the commercialization strategy targeting domestic O&P clinics along with Ottobock foreign distribution should provide greater access to the market.
- Long-term growth – Henry believes that evidence of therapeutic benefit (restoring native function) could build, especially since home-use facilitates a more reinforcing training regimen (muscle memory). If this occurs, the analyst expects that penetration could accelerate. Additionally, the analyst anticipates higher penetration rates in this market, as the neuroplasticity advantages of youth could generate greater therapeutic benefits using the MyoPro.
- Reimbursement could provide a tailwind within the next year – The analyst believes that a unique code could expedite broad coverage, potentially within a year. This could expedite access, likely motivating more O&P clinics to offer the device.