Cantor starts Sanara MedTech at OW; PT $45

Cantor Fitzgerald launched coverage of Sanara MedTech (NASDAQ:SMTI) with an “overweight” rating and a 12-month price target of $45. The stock closed at $36.66 on June 29.

Sanara has built a portfolio of differentiated assets within the wound and skin care space. “We believe that this differentiation should drive uptake, and that some of Sanara’s key products are in the early stages of uptake,” writes analyst Brandon Folkes. 

In addition, “the company’s technology business could command a significant valuation, if successful,” Mr. Folkes said. “Given that these products target large addressable markets, we expect upwards earnings estimate revisions, pipeline expansion and potential business development to drive upside to Sanara’s stock.” 

The company’s lead product is CellerateRX, which is hydrolyzed collagen that provides a moist environment for surgical sites and wounds. It generates most of the company’s revenue to date, and is growing significantly, Mr. Folkes said. 

Sanara currently markets seven products, with new product and service launches expected later this year. “We believe that all of Sanara’s products have the potential to be best in class, providing better outcomes to patients,” he added.