Echelon Wealth Partners reiterated Profound Medical’s Top Pick status (TSX:PRN; OTCQX:PRFMF) and maintained its “buy” rating and $3 price target. The stock closed at 74 cents on Jan. 9.
Analyst Doug Loe writes that recent weakness in Profound’s stock price has created an attractive entry price level for investors.
Despite Profound’s recent share price performance, Mr. Loe said that to focus too intensely on the fourth quarter’s return is to miss that Profound is actually up 25% since Echelon made the stock a Top Pick in October 2018.
“We believe that pipeline attractiveness, coupled with imminently-anticipated clinical/regulatory milestones, notably for TULSA-PRO, gives us confidence that medium-term returns consistent with our price target are achievable,” Mr. Loe said.
Profound is commercializing its CE marked TULSA-PRO system, which combines real-time MR imaging with transurethral, robotically-driven therapeutic ultrasound and closed-loop thermal feedback control to provide precise ablation of the prostate while protecting surrounding tissue from potential side effects.
Mr. Loe said that the competitive landscape for TULSA PRO, specifically for localized prostate tumor ablation, is substantial, with competition from both alternative device-based therapies and alternative ultrasound ablation devices.
Profound is also commercializing its CE marked Sonalleve platform, which combines real-time MR imaging and thermometry, for the treatment of uterine fibroids and palliative pain treatment of bone metastases.
