BioTuesdays

BTIG ups Vapotherm PT to $53 from $32

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BTIG raised its price target for Vapotherm (NASDAQ:VAPO) to $53 from $32, citing a higher compound annual growth rate for revenue after a proprietary survey of U.S. hospitals that purchased the company’s Precision Flow Hi-VNI systems during the pandemic. 

Shares of Vapotherm closed at $46.16 on July 10. Analyst Marie Thibault writes that the stock price has more than doubled since the first quarter earnings report in May, including a 12% gain last week.

Vapotherm makes medical devices including the Precision Flow Hi-VNI system for respiratory distress. 

Ms. Thibault said BTIG’s survey was positive, with nearly all of the 26 respondents planning to keep using the new systems after the pandemic is resolved and almost half planning to order more units. 

“These polling results make us more confident that new Vapotherm systems will not be shoved into storage following the pandemic, so these new units should generate recurring disposables revenue,” she added. 

Ms. Thibault said recent indicators pointing to continued demand include COVID-19 hospitalizations, the recent Blanket Purchase agreement from the Department of Defense and increased manufacturing capacity.

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