AGP starts Myomo at buy; PT $36.50

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Alliance Global Partners initiated coverage of Myomo (NYSEA:MYO) with a “buy” rating and price target of $36.50. The stock closed at $10.19 on June 9.

“Myomo, in our view, represents one of the most compelling stories in medtech today, yet remains virtually unappreciated by investors,” writes analyst Ben Haynor. 

The company has developed and markets the MyoPro, a wearable robotic brace that improves arm and hand function for patients suffering from neurological disorders and upper limb paralysis. This allows users to self-initiate and control motion of the device using existing nerve pathways and enables use of the elbow, wrist, grasp and fingers, depending on the model. 

“We see this as offering patients tremendous improvement in their ability to accomplish activities of daily life – simple things, such as cutting an avocado or pushing a grocery cart, that were difficult or impossible for the user prior to MyoPro,” Mr. Haynor said. In addition, the MyoPro is the only marketed upper limb device that can restore a patient’s ability to perform these activities of daily life. 

Myomo estimates that about 250,000 new stroke victims in the U.S. could be candidates for the MyoPro. “We see this as offering plenty of open field for the company,” Mr. Haynor said, adding that Myomo has built its own go-to-market channel using social media advertising, and “we see the flywheel as beginning to spin.” 

Mr. Haynor said “investors, in our view, have lumped Myomo shares in with robotic lower limb exoskeleton firms … and we view this as a significant mistake, but also a substantial opportunity for new investors.”