Roth resumes coverage of LeMaitre Vascular at buy; PT $38

Roth Capital Partners resumed coverage of LeMaitre Vascular (NASDAQ:LMAT) with a “buy” rating and $38 price target. The stock closed at $33.77 on June 7.

LeMaitre offers disposable medical devices, implants (synthetic and biologic), and tissue cryopreservation services for the treatment of peripheral vascular disease.

Analyst Scott Henry writes that the impetus for his “buy” rating is “our belief that the long-term growth strategy is intact and that there are near-term opportunities for upside to our current estimates.”

Mr. Henry said LeMaitre’s biologic implants should continue to drive growth. “The company’s decision to acquire four biologic implant assets since 2012 appears correct in hindsight, as XenoSure is now its lead product and the segment represents 36% of revenues,” he added.

He also expects resumed sales-force expansion to drive organic growth in the near term. The recent sale of assets used to assist general surgeons in removing gall bladders further focuses the sales force and increases the likelihood of an acquisition in the near term, he added.

“The recent pullback in LeMaitre stock price following the first quarter earnings report presents an attractive entry,” Mr. Henry said.


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