Avinger (AVGR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on the stock and has a $5.00 price target.
Swayampakula Ramakanth has given his Buy rating due to a combination of factors, including Avinger’s recent strategic partnership which opens significant market opportunities. The collaboration with Zylox-Tonbridge grants Avinger exclusive rights to manufacture and market their image-guided devices in the expansive Greater China region. Considering the high prevalence of peripheral arterial disease in China and the robust sales network of Zylox-Tonbridge, this partnership is expected to greatly increase Avinger’s user base upon receiving regulatory approval. Additionally, the agreement provides Avinger with access to Zylox-Tonbridge’s peripheral vascular products for distribution in the U.S. and Germany, potentially aiding in market development in these regions.
The partnership is also projected to benefit Avinger financially, potentially expanding gross margins and strengthening the balance sheet. The technology transfer agreement includes an option for Avinger to utilize Zylox-Tonbridge’s manufacturing services post-FDA approval, which could improve long-term profitability. Furthermore, the agreement includes a two-tranche equity funding up to $15 million, enhancing Avinger’s financial liquidity and aiding in sustainable growth. Ramakanth’s valuation of Avinger at a $5.00 price target over the next 12 months is based on a risk-adjusted net present value analysis, incorporating projected revenue growth and improved financial stability due to these strategic developments.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Avinger (AVGR) Company Description:
Avinger, Inc. manufactures catheter devices used to treat vascular diseases. It designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease. Its products include Pantheris, Lightbox, Ocelot, Ocelot MVRX, Ocelot PIXL, Pantheris, Wildcat, Juicebox and Kittycat 2. The company offers its products to interventional cardiologists, vascular surgeons, and interventional radiologists. Avinger was founded by John B. Simpson and Himanshu N. Patel on March 8, 2007 and is headquartered in Redwood City, CA.
Read More on AVGR:
