5 big analyst AI moves: Nvidia guidance warning; Snowflake, Palo Alto upgraded
Investing.com - Piper Sandler initiated coverage on Carlsmed Inc (NASDAQ:CARL) with an Overweight rating and a price target of $18.00 on Monday. The company, currently valued at $360 million, has shown strong gross margins of 74% despite not being profitable over the last twelve months, according to InvestingPro data.
The investment firm highlighted that Carlsmed designs 3D-printed spinal implants custom-fitted to each patient’s unique anatomy, noting it is currently the only product of its kind available on the market.
Piper Sandler identified Carlsmed’s competitive position in the $14 billion U.S. lumbar implant market, with plans to enter the $6 billion U.S. cervical market in 2026, expanding its total addressable market.
The firm emphasized Carlsmed’s clinical data showing significantly better patient outcomes compared to incumbent implants, with revision rates approximately six times lower than traditional spacers, alongside a favorable reimbursement profile that appeals to both surgeons and hospitals.
Piper Sandler expressed confidence that Carlsmed’s recent IPO capital will support sales force expansion, drive surgeon adoption and market penetration, and increase revenues over the coming years, potentially translating to positive price performance.
In other recent news, Carlsmed, Inc. has made significant strides with its initial public offering (IPO), pricing its shares at $15.00 each. The company began trading on the Nasdaq Global Select Market, matching the IPO price, and offered 6,700,000 shares of common stock. This IPO is expected to generate approximately $100.5 million in gross proceeds, excluding underwriting discounts and other expenses. Additionally, Goldman Sachs has initiated coverage on Carlsmed with a Buy rating and set a price target of $19.00, suggesting a potential 40% upside from current levels. The investment bank highlighted Carlsmed’s unique technology, anticipated revenue growth, and efficient business model as reasons for its optimistic outlook. The IPO’s pricing and the positive analyst coverage mark crucial developments for Carlsmed as it navigates its early days as a publicly traded company. These recent events are pivotal for investors watching Carlsmed’s progress in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.