BTIG initiated coverage of Beyond Air (NASDAQ:XAIR) with a “buy” rating and $15 price target. The stock closed at $5.73 on June 14.
Beyond Air is a medical device company that has developed a technology to turn room air into nitric oxide to deliver nitric oxide therapy via its LungFit platform.
The company has secured its first FDA indication for the LungFit PH system in persistent pulmonary hypertension of the newborn and has spent the past several months introducing the technology to hospitals with high-acuity neonatal intensive care units.
“The LungFit PH system is an improvement on the existing standard of care because it eliminates the risks and hassle of gas cylinders by generating nitric oxide on demand, at the proper dosages,” writes analyst Marie Thibault.
She said Beyond Air has moved into the second phase of its market rollout and is expected to start entering into contracts with hospitals and recognizing revenue.
“We believe Beyond Air is undervalued because investors are awaiting sales following this extended introductory period, and because little attention is being paid to the company’s extensive pipeline or Beyond Cancer affiliate,” Ms. Thibault said.
“While there are risks to an investment in Beyond Air, including large competitors, we believe that as the company achieves its upcoming catalysts — sales ramp, regulatory wins, clinical studies — the technology platform’s value will gradually be recognized by investors,” she added.
