Roth Capital Partners initiated coverage of Myomo (NYSE American:MYO) with a “buy” rating and $9 price target. The stock closed at $4.15 on March 8.
Analyst Scott Henry writes that the MyoPro robotic arm brace offers meaningful benefits that could address a large market of individuals with partial upper extremity paralysis.
“Given the reliance on future revenue growth and the potential need for additional financing, this investment should be considered speculative,” he added.
Mr. Henry noted that recent product enhancements for the MyoPro 2 and a newly established commercialization strategy should drive near-term growth. “While the company has a strong track record obtaining reimbursement on an individual case basis, we believe that a unique code could expedite broad coverage, potentially within a year. This could expedite access, likely motivating more prosthetics and orthotics clinics to offer the device,” he said.
Myomo already has fit some pediatric users. “We anticipate higher penetration rates in this market, as the neuroplasticity advantages of youth could generate greater therapeutic benefits using the MyoPro,” Mr. Henry added.