BTIG starts Venus Concept at buy; PT $7

BTIG initiated coverage of Venus Concept (NASDAQ:VERO) with a “buy” rating and $7 price target. The stock closed at $3.52 on June 2.

“It is not an easy time to be an aesthetics device company amidst the COVID-19 outbreak and related concerns about an economic downturn, but we think Venus’ unique subscription model and urgent action to slash unnecessary spending may position the company for a quicker recovery as aesthetics practitioners reopen their doors,” writes analyst Marie Thibault. 

In addition to offering payment models and services that support customers’ aesthetics practices, Venus has the broadest hair restoration product portfolio, she added. 

“We like Venus’ new launches in fast-growing segments like non-invasive fat reduction and hair restoration, its diverse geographic reach, and efforts underway now to improve margins,” Ms. Thibault said. 

In spite of risks like eventual financing needs and competition, “we believe Venus deserves to trade at a higher multiple in line with its aesthetics peers as recent distractions like last year’s lengthy merger process, loan covenants (now amended), and the COVID-19 pandemic recede,” she added.