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On Wednesday, Needham analysts raised Establishment Labs Holdings Inc . (NASDAQ:ESTA) stock rating from Hold to Buy, setting a price target of $48.00, representing significant upside from the current price of $34.96. The upgrade comes as the easing of trade tensions has lessened concerns about the company’s international business prospects. According to InvestingPro data, the company, currently valued at $1.01 billion, has shown strong historical returns despite high price volatility. Analysts at Needham have cited the company’s products, Mia and Preservé, as potential growth drivers outside the United States.
The management of Establishment Labs has expressed optimism about the upcoming launch of Motiva in the U.S. market. Needham’s analysts share this sentiment, indicating increased confidence that the Motiva launch could contribute significantly to the company’s performance in 2025.
Additionally, an investor day scheduled for June 12, 2025, in New York City is anticipated to act as a positive catalyst for the company. Needham’s commentary suggests that the investor event may further highlight the company’s growth trajectory and strategy.
The analysts have also pointed to the current valuation of Establishment Labs as an attractive entry point for investors, given the company’s growth potential. This assessment factors in the broader market conditions and the company’s specific financial and strategic position.
Establishment Labs is known for its innovative work in the medical aesthetics sector, particularly in breast aesthetics and reconstruction. The upgrade by Needham indicates a positive outlook on the company’s ability to capitalize on its market position and expand its influence in the industry.
In other recent news, Establishment Labs Holdings Inc. reported its first-quarter earnings for 2025, with revenue aligning with its earlier preannouncement and adjusted EBITDA surpassing consensus expectations. The company’s U.S. sales saw a significant 91% sequential increase, and gross margin improved by 160 basis points year-over-year. However, the adjusted EBITDA margin declined due to increased expenditures related to the U.S. market launch. In corporate developments, Establishment Labs appointed Peter Caldini as the new CEO, following his interim leadership since March. Caldini’s extensive experience in healthcare and consumer sectors is expected to drive the company toward achieving its financial goals. On the analyst front, Needham maintained a Hold rating on Establishment Labs, expressing optimism about the U.S. launch but cautioning about international business challenges. Meanwhile, Mizuho (NYSE:MFG) reiterated an Outperform rating with a $58 price target, citing potential advantages from currency fluctuations and the company’s strategic positioning amid trade tensions. TD Cowen also maintained a Buy rating and a $60 price target, noting the company’s resilience against new tariff impacts due to its operational base in Costa Rica.
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