Establishment Labs: A Strong Buy on Robust Q1 Performance and Strategic Market Expansion

Analyst Marie Thibault of BTIG reiterated a Buy rating on Establishment Labs Holdings (ESTA – Research Report), retaining the price target of $62.00.

Marie Thibault’s rating is based on a thorough analysis of Establishment Labs Holdings’ recent performance and future prospects. The company’s Q1 revenue surpassed expectations, indicating stabilization in its end markets, which bodes well for future demand. Their operational expenses were under control, leading to a smaller than anticipated adjusted EBITDA loss. Thibault also notes that the company has maintained its sales guidance, reflecting confidence in its growth trajectory. Furthermore, the anticipated FDA approval for the U.S. market and the successful launch in China contribute to the positive outlook, with Establishment Labs poised to become a market leader.

The analyst’s Buy rating is further supported by the company’s strategic personnel hires in preparation for U.S. market entry, signaling readiness for expansion. The compelling safety data from the Motiva U.S. IDE study positions the company favorably against competitors, enhancing its commercial prospects. In addition to these operational strengths, Thibault’s valuation considers potential revenue from the U.S. market and sets a price target that reflects the company’s expected sales growth and market penetration. The combination of these factors leads to a confident Buy rating, anticipating significant catalysts in the near future that could propel Establishment Labs’ success.

Thibault covers the Healthcare sector, focusing on stocks such as Masimo, Establishment Labs Holdings, and Boston Scientific. According to TipRanks, Thibault has an average return of -2.0% and a 34.07% success rate on recommended stocks.

In another report released on May 2, TD Cowen also maintained a Buy rating on the stock with a $60.00 price target.

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.

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.