Sunday, December 21, 2014

ThinkEquity starts NxStage Medical at buy

July 19, 2012 by · Leave a Comment 

ThinkEquity has initiated coverage of NxStage Medical (NASDAQ:NXTM) with a “buy” rating and $22 price target, saying the company’s revenue growth should increase steadily during the next five years. The stock closed at $15.27 on Thursday.

“We believe home hemodialysis technology is the future of end-stage renal disease (ESRD) management, and we believe NxStage should benefit from potential growth in the ESRD patient population in the coming decades,” writes analyst Spencer Nam.

“We expect home dialysis reimbursement to improve in the near future, in our view, removing one of the key hurdles for adoption of home dialysis,” he added.

Mr. Nam figures the ESRD market could double over the next decade as the prevalence of diabetes and the elderly population continues to increase around the world. “We view home hemodialysis technology to be a disruptive innovation that provides a better treatment of ESRD than that of in-center dialysis treatment,” he added.

“With less than 20% penetration among the more than 40,000 home dialysis eligible patient population today, we believe home dialysis remains under penetrated with strong growth potential.”

Regarding reimbursement guidelines for home dialysis, Mr. Nam said the earliest potential milestone for positive announcement could be late July when Medicare will announce a 2013 preliminary reimbursement schedule.

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