Canaccord Genuity raised its price target for Vapotherm (NYSE:VAPO) to $20 from $14, citing preannounced first quarter results that beat expectations. The stock closed at $16.65 on April 13.
Vapotherm is focused on the development and commercialization of its Hi-VNI technology products that are used to treat patients of all ages suffering from respiratory distress,
“We see significant, additional upside in Vapotherm common, thus recommend small-cap investors continue to add to positions at current levels,” writes analyst Jason Mills.
He said the company has seen unprecedented demand for its products and is currently fulfilling orders based on the greatest acute need. “Vapotherm also expanded production capacity three-fold in the quarter without accelerating cash burn, demonstrating sound fiscal discipline in the face of unprecedented scale-up activities.”
Mr. Mills said COVID-driven demand accelerated the firm’s Precision Flow installed base in the U.S. “The firm was also early and effective with initiatives to engage customers and drive awareness using virtual connectivity technology even before the COVID pandemic commenced.”
While COVID-19 catalyzed the business in the first quarter and will likely fuel the business in the second and third quarters of 2020 as well, “we think there are long-lasting, positive implications for the firm, namely an acceleration in new account openings and ramping awareness of Vapotherm’s unique, differentiated Hi-VNI technology,” he added.
