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On Friday, BTIG analysts began covering Establishment Labs Holdings Inc . (NASDAQ:ESTA), currently trading at $36.62, by issuing a Buy rating and setting a price target of $62.00. According to InvestingPro data, the stock has shown strong momentum with a 7.96% gain over the past week, though it remains significantly below its 52-week high of $60.09. The firm’s analysts highlighted the potential of Establishment Labs’ Motiva breast implants, citing their unique qualities and safety profile as a significant advancement in the medical aesthetics industry.
The analysts emphasized that Motiva’s technology is poised to replace older implants, given its innovative design and natural feel. They pointed out that the product has already secured over 40% market share in its established territories, demonstrating its capability to compete with long-standing industry players, especially in new markets like the U.S. and China. With a market capitalization of $1.06 billion and revenue of $170.24 million in the last twelve months, the company has shown promising revenue growth of 9.27%.
BTIG’s coverage transfer is part of a strategic move to expand their focus on the medical aesthetics sector. The analysts reiterated their positive stance, expecting that Establishment Labs’ shift towards higher-priced markets will lead to an increase in gross margins. They also predict that the company will achieve positive adjusted EBITDA later in the year and generate positive cash flow by 2026.
The analysts foresee additional growth opportunities for Establishment Labs in the minimally invasive aesthetics space with its Mia and Preservé products. A more detailed exploration of these initiatives is anticipated at the company’s investor day on June 12, where updates on the U.S. launch and financial projections will also be provided.
In summary, BTIG’s analysts are confident in Establishment Labs’ trajectory, noting that the company’s innovative products are set to disrupt the industry and drive financial success in the coming years. While the company currently maintains a healthy current ratio of 3.36, InvestingPro analysis reveals 8 additional key insights about ESTA’s financial health and growth potential, available exclusively to subscribers.
In other recent news, Establishment Labs Holdings Inc. reported first-quarter revenue growth of 11%, aligning with its previous guidance, while adjusted EBITDA surpassed consensus expectations. Despite a slowdown from the previous quarter’s 41% growth, U.S. sales showed a significant 91% sequential increase, exceeding estimates. Analysts at Needham upgraded Establishment Labs to a Buy rating, citing the easing of trade tensions and the potential growth from products like Mia and Preservé. Mizuho (NYSE:MFG) Securities maintained an Outperform rating with a $58 price target, highlighting the potential benefits from currency fluctuations and the strategic U.S. Motiva launch.
The company recently appointed Peter Caldini as the new CEO, effective immediately, following the retirement of founder Juan José Chacón-Quirós. Caldini, previously serving as Interim CEO, brings extensive experience from leadership roles in healthcare and consumer companies. Establishment Labs is also preparing for an investor day in June 2025, which Needham analysts suggest could positively impact the company’s growth trajectory. Despite concerns about international business challenges, the firm’s strategic focus on the U.S. market and upcoming product launches are seen as key drivers for future performance.
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