- RBC Capital Markets initiated coverage on Outset Medical Inc OM with an Outperform rating and a price target of $23.
- The analyst writes that Outset Medical is a medical device company that offers a disruptive, first-of-its-kind technology designed to reduce the cost and complexity of dialysis – an $11 billion U.S. total addressable market for kidney failure treatment.
- The analyst view OM as significantly undervalued, given the opportunities ahead.
- RBC believes the company is poised for rapid growth given the significant cost savings associated with the Tablo hemodialysis system as it focuses on the ~$3 billion acute care sub-market and looks to leverage this advantage in the $8.5 billion home setting where there are major tailwinds.
- It is poised to deliver 3-year and 5-year revenue CAGRs of 46% and 39%, which is among the highest in MedTech, and is poised to benefit from major healthcare tailwinds, i.e., shift to the home aided by reimbursement.
- Earlier this week, Outset Medical posted Q3 adjusted EPS loss of $(0.70), beating the consensus of $(0.81) with sales of $27.76 million, better than the consensus of $25.22 million.
- The company raised 2022 revenue guidance to $111-$113 million versus the consensus of $108 million.
- Price Action: OM shares are up 4.91% at $18.37 on the last check Friday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article