Roth ups iRadimed to buy

Roth Capital Partners upgraded iRadimed (NASDAQ:IRMD) to “buy” from “neutral” and raised its price target to $12 from $9 after the company reported second quarter results. The stock closed at $9.80 on July 31.

iRadimed is a provider of non-magnetic intravenous infusion pump systems that are safe for use during magnetic resonance imaging procedures.

Analyst Chris Lewis writes that given improving stabilization in the underlying pump business, excluding the backlog; expected FDA-approval for the MRI-monitor and launch by the fourth quarter; and favorable comparatives in 2018, “we believe iRadimed is well-positioned to return to meaningful top-line growth of at least about 15% next year, an aspect that we believe isn’t fully appreciated.”

He said that while the company still faces challenging reporting comparatives in the second half of 2017 and implied fourth quarter revenue guidance depends on the U.S. monitor approval/commercialization, “we come away incrementally bullish on the likelihood for a meaningful growth turnaround in 2018.”

And while iRadimed’s valuation isn’t inexpensive at about 3.4 times estimated 2018 revenues, excluding cash, “we believe it isn’t fully valued given iRadimed’s return to double-digit growth next year, superior gross margin profile, potential monitor outperformance, and underlying profitability,” he added.


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