In a report released today, Josh Jennings from TD Cowen maintained a Buy rating on Establishment Labs Holdings (ESTA – Research Report), with a price target of $50.00.
Josh Jennings attributed his Buy rating for Establishment Labs Holdings to a confluence of favorable market dynamics and the company’s strong product offering. The recent bankruptcy of Sientra, a key competitor in the U.S. breast implant market, provides a strategic opening for Establishment Labs. With Sientra’s exit, the market share it once held is now up for grabs, presenting an opportunity for Establishment Labs to capture this void with its Motiva implants which are nearing FDA approval. The timing of these events could not be more propitious for Establishment Labs, as it stands to benefit from the current market disruption and the availability of experienced sales professionals from Sientra.
Furthermore, Jennings’s optimism is also rooted in the superior clinical data supporting Motiva implants, which demonstrate a remarkably low capsular contracture rate, setting a new safety benchmark in the industry. This compelling safety profile is expected to drive robust early adoption by plastic surgeons in the U.S. Additionally, the current market landscape, already conducive to the introduction of innovative products, is likely to be even more receptive in light of Sientra’s departure. The potential for Establishment Labs to strategically hire Sientra’s experienced sales representatives further solidifies the company’s advantageous position for a successful product launch and market penetration.
According to TipRanks, Jennings is a 4-star analyst with an average return of 5.4% and a 54.40% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Abbott Labs, Medtronic, and Edwards Lifesciences.
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Establishment Labs Holdings (ESTA) Company Description:
Establishment Labs Holdings, Inc. engages in the design, development, manufacture, and marketing of silicone breast implants. It offers its products under Motiva Implants brand. The company was founded by Juan Jose Chacon-Quiros in 2013 and is headquartered in Alajuela, Costa Rica.
Read More on ESTA:
- Establishment Labs Announces Potential 2M Share Sale
- Establishment Labs launches Motiva Implants in China
- Establishment Labs to sell 2M shares at $25.00 in private placement
- Establishment Labs sees FY23 revenue $165M-$165.4M, consensus $164.92M
- Establishment Labs sees Q4 revenue $31.4M-$31.8M, consensus $31.47M
