BTIG Research has launched coverage of Senseonics Holdings (NYSE MKT:SENS) with a “buy” rating and 12-month price target of $4.50. The stock closed at $2.97 on Monday.
“This may be a better way to monitor glucose if some hurdles are cleared,” writes analyst Dr. Sean Lavin, referring to the company’s implantable continuous glucose monitor (ICGM) and whether endocrinologists will be willing to do implants.
“We believe ICGMs (Senseonics should be first to market) could offer better compliance and glucose control in some patients,” he said. While ICGMs may benefit all diabetics and have a huge potential market, the device may see very strong traction in less compliant patients such as the young and the elderly.
“We see shares as a bit binary with more upside than downside and feel the biggest risk will be getting endocrinologists to do procedures,” he added.
Dr. Lavin said Senseonics has submitted its ICGM for CE Mark approved and he expects approval in the second quarter this year.
The company also launched its U.S. clinical trial in the first quarter and expects data as early as the third quarter this year, with a potential FDA approval by late 2017 or early 2018. “These catalysts should drive [the] shares,” he said.