Friday, April 25, 2014

Roth ups TearLab price target to $3

December 6, 2011 by · Leave a Comment 

Roth Capital Partners has raised its price target on “buy-rated” TearLab (NASDAQ:TEAR; TSX:TLB) to $3 from $2.20, citing a decision by the FDA to grant the TearLab Osmolarity System a waiver under the Clinical Laboratory Improvement Amendments (CLIA).

The stock was quoted at $1.19 Tuesday afternoon.

“This milestone could represent a significant driver of TearLab U.S. placements, particularly as many physicians have opted not to adopt the system based on the complexity of obtaining CLIA certification,” writes analyst Matt Dolan, who initiated coverage of TearLab last week.

“In our opinion, this represents a major milestone for TearLab and one of two potential catalysts that we anticipated in our recent initiation report (the other being the possibility of an improved national reimbursement rate),” he said.

“Based on our diligence, we expect this CLIA-waiver will simplify the sales process and therefore accelerate TearLab’s ability to place active systems from its current pace of about 15 per month in the third quarter of 2011,” he said, adding that management could “expand its direct sales efforts to capitalize on this waiver, especially considering a larger pool of optometrists can now be targeted.”

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