Stifel initiated coverage of Senseonics Holdings (NYSE American:SENS) with a “buy” rating and $2 price target. The stock closed at 95 cents on Oct. 22.
Senseonics is an emerging company with a long-duration, implantable sensor in the large and rapidly growing continuous glucose monitoring (CGM) market.
“The Senseonics story is in the earliest of innings and not surprisingly, the company faces a number of commercialization challenges, most notably garnering broad reimbursement and high cash burn,” writes analyst Mathew Blackman.
Mr. Blackman said the company’s implantable sensor is differentiated and can appeal to patients averse to frequent sensor changes and other quality-of-life headwinds associated with finger sticks and current CGM systems.
“Assuming a $5-billion-plus CGM opportunity today, even if the ultimate Eversense patient cohort only appeals to 5% of the market, Senseonics revenue base should approximate $200-million to $300-million, significantly higher than current valuation contemplates,” he added.
