BTIG raised its price target for Conformis (NASDAQ:CFMS) to $4.50 from $3 after the company arranged $33-million in debt and equity financing from Innovatus Capital Partners and East West Bank. The stock closed at $3.84 on June 25.
“We feel this financing successfully removes further overhang in the shares (and the equity is a validation on shares’ recent rally), giving Conformis additional runway to improve growth,” writes analyst Ryan Zimmerman.
Conformis designs and manufactures customized hip and knee replacements that are made specifically for each patient.
“Following a massive rally to begin the year, we feel investors, which had previously been concerned on the long-term viability of the company, are now viewing Conformis on a basis that is more in line with fundamentals (and not about financing risk),” he added.
Mr. Zimmerman said that with the new debt terms, growing clinical data, improving sales results, and better expense management, “we feel that Conformis should be able to trade in line with peers where investors can evaluate the company solely on operational performance.”
