BTIG upgraded TransEnterix (NASDAQ:TRXC) to “buy” with a price target of $3.50 after the company posted first quarter revenue above expectations. The stock closed at $1.83 on April 8.
Dr. Sean Lavin writes that there have been three Senhance robotic surgery system sales so far in the second quarter, including one U.S. unit. “This is ahead of our expectations,” he added.
“We saw significant momentum at Society of American Gastrointestinal and Endoscopic Surgeons meeting (many doctors trying the system) and robust sales results from Intuitive Surgical recently,” Dr. Lavin said.
“But we wanted to see TransEnterix convert the interest and market momentum into some sales before upgrading,” he added. “We think now makes sense.”
In addition, Dr. Lavin said the upgraded reflected the sales uptick, the healthy surgical robotic market, and outside-U.S. catalysts.
