Cantor assumes coverage of SI-BONE at OW; PT $34 down from $41


Cantor Fitzgerald analyst Ross Osborn assumed coverage of SI-BONE (NASDAQ:SIBN) with an “overweight” rating and price target of $34. The stock closed at $21.28 April 6.

SI-BONE is a medical device company that pioneered minimally invasive surgery of the sacroiliac joint with the iFuse Implant System.

Mr. Osborn writes that he believes adoption of iFuse procedure will accelerate in 2022 as COVID-related headwinds subside and the company benefits from a higher physician fee, improved sales force productivity, positive five-year data and broader insurance coverage.

In addition, he said new product launches stand to bolster growth and “we view the company’s shares as materially undervalued relative to small-cap high-growth MedTech peers.” 

His 12-month, $34 price target assumes a multiple of 6.7 times enterprise value/2023 estimated revenue, which represents a slight discount to high-growth MedTech peers at 7.7 times. 

In its fourth quarter earnings call, SI-BONE established revenue guidance for 2022 in the range of $106-million to $108-million, representing year-over-year growth of 18% to 20%. 

“Accordingly, we moderated our 2022 revenue estimate from $109.2-million to $107.3-million and lowered our price target from $41 to $34,” Mr. Osborn said. “The company’s lower-than-forecasted guidance is due to COVID-related headwinds in the first half of 2022 before an expected return to a more normal operating environment.”