BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Canaccord Genuity initiated coverage on Establishment Labs Holdings Inc . (NASDAQ:ESTA), currently trading at $37.70 with a market cap of $1.09 billion, with a Buy rating and a $60.00 price target on Wednesday. According to InvestingPro data, analyst targets range from $40 to $70, showing strong upside potential.
The research firm cited the company’s innovative breast implant portfolio and its potential to capture significant market share in the United States as its domestic launch progresses and as it submits additional products for FDA approval. The company has demonstrated strong execution with revenue growth of 17.2% over the last twelve months.
Canaccord highlighted ESTA’s smaller implant and minimally invasive procedure named Mia, which aims to expand the total addressable market by appealing to patients who previously wouldn’t have considered breast augmentation.
The firm also noted the upcoming soft launch of ESTA’s Preservé technique in the third quarter, which preserves rather than disrupts breast tissue during augmentation, and its Flora tissue expander for reconstruction patients that allows for concurrent breast cancer treatment.
Canaccord expects Establishment Labs to achieve over 20% growth in the coming years despite macroeconomic pressures on cash-pay aesthetic procedures, with the company’s U.S. launch already exceeding expectations and featuring a celebrity partnership with Meghan Trainor. While InvestingPro analysis indicates the company isn’t expected to be profitable this year, its strong liquidity position with a current ratio of 2.84 provides financial flexibility. Get detailed insights and 6 additional ProTips with an InvestingPro subscription.
In other recent news, Establishment Labs has been the subject of several analyst updates. Mizuho (NYSE:MFG) has increased its price target for the company to $70, citing the success of its Motiva breast implant product in transforming the U.S. breast augmentation market since receiving FDA approval nine months ago. The firm maintains an Outperform rating on the stock, highlighting the positive impact of Motiva’s market performance. Additionally, Needham has reiterated its Buy rating and maintained a $48 price target after the company’s investor day in New York City. During the event, plastic surgeons expressed positive views on Establishment Labs’ implants and procedures, predicting significant market share growth in the U.S. over the coming years. These recent developments reflect growing confidence among analysts and industry professionals in Establishment Labs’ market position and product offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.