BTIG Research has initiated coverage of Entellus Medical (NASDAQ:ENTL) with a ‘buy” rating and $22 price target. The stock closed at $18.58 on Monday.
“Entellus Medical benefits patients, physicians, and payers by moving balloon sinus dilation (BSD) out of the hospital and into physician offices,” writes analyst Dr. Sean Lavin.
“This has driven significant growth that should continue,” he said. “Add on competitive advantages, new indications, and the potential to be acquired and we believe investors should own shares.”
Dr. Lavin said it’s rare that a company’s product benefits all three – patients, physicians, and payers. The patient benefits from less recovery time, less pain, and less narcotic use, and has the convenience of an office visit, rather than hospitalization. The physician makes more money while having the added convenience of not leaving the office. The payer benefits because overall costs are significantly reduced with balloon dilation versus surgery.
“The last time we wrote about similar dynamics was Conceptus, which was bought by Bayer for $1.1-billion in June of 2013,” Dr. Lavin added.