BioTuesdays

Stifel starts Venus Concepts at hold; PT $2.50

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Stifel initiated coverage of Venus Concepts (NASDAQ:VERO) with a “hold” rating and price target of $2.50, citing “more work to be done in improving ARTAS,” the company’s robotic hair restoration system. The stock closed at $2.42 on Dec. 8.

“There are many things to like about Venus Concept’s story,” analyst Jonathan Block writes, including the company’s merger in 2019 with Restoration Robotics and “considerable progress right-sizing the organization.”

In addition, Venus Concepts recently entered the non-invasive body contouring market and is in the midst of improving the value proposition for its differentiated ARTAS offering, he added. 

“We view these steps favorably, and believe Venus Concept is well-positioned in the faster growing minimally-invasive/non-invasive aesthetics market and has a leading offering in the $4-billion hair restoration market,” Mr. Block said 

However, “our checks suggest there is more work to be done in improving ARTAS, and we point to several milestones that would help us become more constructive on the stock,” Mr. Block said. These include consistent uptake of Venus’ core six platform technologies; progress on the pipeline; and/or minimizing cash burn/strengthening the balance sheet, heief added.

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