- RBC capital markets initiated reporting Beginning Medical Inc Om with an Outperform rating and a Price target of $23.
- The analyst writes that Outset Medical is a medical technology company offering breakthrough, unique technology designed to reduce the cost and complexity of dialysis — an $11 billion market for treating kidney failure.
- The analyst sees OM as significantly undervalued given the opportunities ahead.
- RBC believes that given the significant cost savings associated with the Tablo hemodialysis system, the company is poised for rapid growth as it focuses on the ~$3 billion acute care submarket and seeks to leverage this advantage in the Leveraging $8.5 billion home environment where there are big tailwinds.
- It’s poised to deliver 3- and 5-year revenue CAGRs of 46% and 39%, which are among the highest in the MedTech industry, and poised to capitalize on the big healthcare tailwind, i.e., the shift to own home with support through reimbursement.
- Earlier this week, Outline Medical posted Q3 Adjusted EPS Loss of $(0.70)which beats the consensus of $(0.81) with revenue of $27.76 million, better than the consensus of $25.22 million.
- The company raised 2022 revenue guidance to $111-113 million from consensus of $108 million.
- Price promotion: OM shares are up 4.91% to $18.37 on the latest check Friday.
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