Analyst Frank Takkinen of Lake Street reiterated a Buy rating on CVRx (CVRX – Research Report), with a price target of $32.00.
Frank Takkinen has assigned a Buy rating to CVRx’s stock in light of several encouraging developments. The FDA’s approval of an expanded label for CVRx’s Barostim device, which now includes comprehensive symptomatic data and a notably high win ratio, is anticipated to significantly enlarge the patient pool and accelerate the adoption rate. The updated label showcases a considerable improvement over the previous one, suggesting a favorable effect of Barostim therapy. Notably, the label indicates a 41% reduction in mortality when used as directed, surpassing the original expectations and highlighting a positive trend for heart transplant/LVAD. Furthermore, the label now reflects extended periods of safety and symptomatic improvements up to 24 months for heart failure patients, compared to the prior six-month data, indicating a stronger endorsement of the device’s benefits over time.
Additionally, these label enhancements are complemented by recent positive changes in reimbursement policies, boosting CVRx’s annual U.S. market potential from $1.4 billion to $2.2 billion. The combination of an expanded patient population and an increase in the average selling price due to the reimbursement change underpins the projection of a more substantial market opportunity. Takkinen notes that CVRx is executing its commercial strategy effectively and may potentially intensify its site expansion strategy as a result of these developments. Despite the stock trading at a premium, the analyst sees continuing upside potential and has consequently raised the price target to $32, reaffirming the Buy rating.
According to TipRanks, Takkinen is an analyst with an average return of -2.6% and a 40.71% success rate. Takkinen covers the Healthcare sector, focusing on stocks such as NeuroPace, TELA Bio, and Aziyo Biologics.
In another report released yesterday, Craig-Hallum also maintained a Buy rating on the stock with a $24.00 price target.
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CVRx (CVRX) Company Description:
CVRx Inc is a commercial-stage medical device company focused on developing, manufacturing, and commercializing minimally invasive neuromodulation solutions for patients with cardiovascular diseases. Its proprietary platform technology, Barostim, is designed to leverage the power of the brain to address the imbalance of the Autonomic Nervous System, which causes heart failure and other cardiovascular diseases.
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