Cantor starts PAVmed at OW; PT $8

Cantor Fitzgerald initiated coverage of PAVmed (NASDAQ:PAVM) with an “overweight” rating and price target of $8. The stock closed at $3.93 on March 29.

The company employs a unique business model that emphasizes capital efficiency and speed to market for its medical device products. 

PAVmed’s subsidiary, Lucid Diagnostics, offers a diagnostic test and cell collection device to detect Barrett’s Esophagus (BE), a precursor of esophageal adenocarcinoma (EAC). “We believe Lucid’s products could enable widespread BE-EAC screening (a large unmet need),” writes analyst Kyle Mikson. 

PAVmed recently announced it intends to spin off Lucid into a separate company, which “we think would drive value for both sides,” he added. PAVmed aims to maintain majority ownership, and will continue to consolidate Lucid’s financial results with its own. 

Mr. Mikson said PAVmed recently launched a minimally invasive device, CarpX, to treat Carpal Tunnel Syndrome (CTS), with clinical performance similar to invasive open surgery. 

“We believe that CarpX could expand the addressable market to patients who choose to avoid surgery, given the complexity and risks of traditional CTS treatment,” he said.

The company also is developing multiple pipeline products, which “we view as promising as well. Given PAVmed’s near-term catalysts and long-term growth drivers, we believe the shares are compelling,” Mr. Mikson said.