BTIG sets Orchestra BioMed stock with $12 target

On Thursday, BTIG analysts initiated coverage on Orchestra BioMed Inc. (NASDAQ:OBIO), a medical technology firm, assigning a Buy rating and setting a price target of $12.00. Currently trading at $4.43, the stock has significant upside potential according to analysts, with targets ranging from $14 to $20. The company is currently engaged in developing two innovative products aimed at addressing hypertension and coronary artery disease, two significant yet underserved markets. According to InvestingPro, three analysts have recently revised their earnings expectations upward for the upcoming period.

Orchestra BioMed’s BackBeat Cardiac Neuromodulation Therapy (CNT) is being honed for hypertension management in partnership with Medtronic (NYSE:MDT), while its Virtue Sirolimus AngioInfusion Balloon (SAB) is designed to treat atherosclerosis and is being brought to market alongside Terumo Corporation and its U.S. subsidiary Terumo Medical (TASE:BLWV) Corp.

Both products are at the clinical stage, and BTIG highlights their prior compelling data and the potential for upcoming catalysts. The analyst underscored the company’s unique business model, which leverages research and development expertise and strategic partnerships to commercialize new devices. This approach is already showing promise, with InvestingPro data revealing impressive gross profit margins of 92.71%. The company also maintains a strong financial position, holding more cash than debt on its balance sheet.

The stock’s future milestones include updates on the restructuring of the Virtue SAB partnership, enrollment progress in the BACKBEAT pivotal trial, and the commencement of the Virtile ISR pivotal trial. The $12 price target is based on a 4.5x enterprise value to sales multiple on BTIG’s 2034 sales estimate, discounted at 10%. Additionally, a discounted cash flow analysis was employed, considering only the initial U.S. indications with a 1% terminal growth rate.

Orchestra BioMed’s first commercial launches for BackBeat CNT and Virtue SAB are projected for 2028, marking a significant timeframe until the company generates meaningful revenue. The long-term potential of the company’s products and strategic collaborations appear to be the driving factors behind BTIG’s positive outlook. InvestingPro analysis indicates a "Fair" overall financial health score, with particularly strong ratings in relative value and cash flow metrics. Subscribers can access over 30 additional financial metrics and insights about OBIO’s valuation and growth potential.

In other recent news, Orchestra BioMed Inc. is drawing attention with its ongoing clinical trials and analyst ratings. The company is currently conducting the BACKBEAT study, a global trial involving 500 patients, to evaluate the effectiveness of AVIM therapy for patients with uncontrolled hypertension. Patient enrollment is expected to be completed by the first half of 2026, with financial results for 2024 anticipated later this month. Analysts at H.C. Wainwright have maintained a Buy rating on the stock, with a price target of $14, citing the company’s progress in this trial. Meanwhile, Barclays (LON:BARC) initiated coverage with an Overweight rating and a higher price target of $16, highlighting Orchestra BioMed’s innovative medtech model and strategic partnerships. The company’s clinical pipeline targets markets worth approximately $14 billion, with expectations of accelerated earnings and shareholder returns. Barclays notes that while significant financial growth is several years away, the AVIM program’s clinical milestones could attract increased interest. The ongoing pivotal trial for AVIM therapy has recently received approval to expedite patient enrollment, with updates expected in early 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.