Buyers ought to scoop up shares of medical gadget supplier AtriCure , in accordance with JMP Securities, which expects the corporate to be a winner in a single burgeoning medical gadget market. Analyst Daniel Stauder initiated protection of the inventory with an outperform ranking and $60 worth goal, implying shares may soar virtually 70%. “Representing the primary participant in treating complicated types of atrial fibrillation, the corporate has carved out a dominant place in two main legacy cardiac arenas which are nonetheless rising at a really wholesome clip, and the place it’s primarily the one recreation on the town,” Stauder wrote in a Monday word. “The corporate’s efforts to drive working leverage and obtain constructive adjusted EBITDA ought to, in our view, bode nicely within the present MedTech panorama.” AtriCure develops, manufactures and sells units which are used for the therapy of atrial fibrillation, or Afib; left atrial appendage administration, or LAAM; and post-operative ache. The units are marketed to medical facilities. The corporate’s inventory worth has declined nearly 19% up to now this 12 months, with virtually all of that occurring this quarter. Shares briefly climbed 4.8% in early buying and selling Monday earlier than pulling again. ATRC YTD mountain AtriCure inventory. Based on Stauder, AtriCure has moved into two rising alternatives that symbolize even bigger whole addressable markets than the corporate’s conventional area of interest, and JMP views each as providing further alternative. These embrace the corporate’s Open Ablation merchandise, that are the one FDA-approved applied sciences for the therapy of persistent Afib, and its AtriClip product, which is essentially the most broadly used LAAM gadget and has demonstrated advantages in stopping elevated dangers of blood clots and stroke, the analyst stated. Each segments generate about 35% and 40% of whole gross sales, respectively, and are anticipated to generate mid-teen annual gross sales development in 2024 and 2025. The corporate’s fast-growing post-operative ache administration division is one other development alternative, in accordance with Stauder. The analyst stated that this phase, with a doable whole addressable market approaching $1 billion, is more likely to broaden roughly 20% 12 months over 12 months in 2023, 2024 and 2025. It has already grown to account for 12% of income immediately, up from 5% in 2020. AtriCure’s ache administration division “provides a gorgeous layer of development that ought to outpace ATRC’s legacy product portfolios,” Stauder stated. — CNBC’s Michael Bloom contributed to this report.
