BTIG halves TransEnterix PT to $1.50 from $3

BTIG halved its price target for TransEnterix (NASDAQ:TRXC) to $1.50 from $3 after the company’s second quarter results fell short of guidance and consensus estimates. The stock closed at $1.15 on Aug. 7.

TransEnterix is a surgical robotics company that is now focused on the commercialization of its Senhance system.

“The second quarter was another painful report for TransEnterix, with just one system sale, [compared with] the two-to-four units expected by management and consensus,” writes analyst Dr. Sean Lavin.

“This launch has been a complete disappointment,” he said. “We feel TransEnterix has a meaningful laparoscopic product but since it is going after less complex procedures than robotic competitors, we think it should be priced much lower.”

Dr. Lavin suggested it is time for management to “change a strategy that clearly is not working” and either partner with a much larger surgical/capital equipment player or hire a bank to explore a sale.

“At this point, we acknowledge TransEnterix cannot make consistent sales and our buy [recommendation] is based on our belief that this robotic tool is more likely to align with another company than go bankrupt—though either is possible.”


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