4 Hot Analyst Reads For Wednesday, July 18th

Bret Jensen

"It is difficult to get a man to understand something when his income depends on his not understanding it."– H. L. Mencken

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Here are four small cap stocks seeing notable analyst commentary just before we open for trading this Wednesday

LivaNova (LIVN) could see some action today as Needham takes up its price target to $128 from $106 previously on the this London based therapeutic solution concern. While maintaining their Buy rating, Needham had this to say about recent developments behind their upward price revision

“Services (CMS) announced that it opened a national coverage analysis (NCA) for vagal nerve stimulation (VNS) for treatment-resistant depression (TRD). The proposed and final announcements are expected on or around 11/30/18 and 2/28/19, respectively. Given new clinical data published since CMS denied TRD coverage in 2007 and the recent spate of high-profile suicides, we believe CMS is likely to cover VNS for TRD again. We have performed a more detailed analysis of the potential impact of TRD coverage and now see potential for a larger share price impact than in our prior analysis. Given this, we still see a positive expected value around the NCA decision and recommend that investors buy shares in advance of the proposed NCA and we have raised our price target to $128 from $106.”

Mesoblast (MESO) also seeing some positive analyst action over the past 24 hours. Before the bell this morning, Maxim Group raises their price target to $16 from $14 previously while maintaining their Buy rating to this Australian based concern. Late Yesterday, Oppenheimer reissued their Buy rating with the same $16 price target and the following commentary

“The discussion with KOLs strongly supports the development of SY-1425 in AML and high-risk MDS in combination with hypomethylating agents (HMAs) and with anti- CD38 therapy. We continue to expect data from these combination cohorts in Q4 2018. We estimate that SY-1425 will account for 100% of Syros’ 2022 revenue, and believe that near-term clinical results for SY-1425 are the biggest driver of value for Syros. The views expressed by Drs. Cook and Stein today are consistent with those of investigators at the 2017 ASH meeting.”

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The shares were up some 12% in trading on Tuesday.

it could be a tough day for two dental consumable makers today. Goldman Sachs is lowering their price target on Dentsply (XRAY) to $43 from $45 previously while maintaining its Sell rating on the stock. They are also reiterating their Sell rating on Patterson Companies (PDCO) this morning while maintaining their $21 price target on that concern. Goldman cites a 'Q2 dental survey indicates a "modest softening in consumable purchases and a slightly greater slowdown in equipment spending" reported by U.S. dentists, which puts the guidance of those companies at risk.'

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The shares of Dentsply have already had a rough 2018 (see above). However, the stock appears to be trying to form a bottom in recent months. If the shares have little reaction to Goldman's view, we may be in the process of making a firm floor for the stock.

Finally, Omeros (OMER) gets a 'shout out' from H.C. Wainwright before the market opens. The analyst firm reiterates their Buy rating and has a $34 price target on the concern using the following methodology

“Valuation methodology, risks and uncertainties. We ascribe a total firm value of roughly $2B to Omeros based on OMIDRIA ($806M) and OMS721 ($1.18B). This translates into a target of $34.00 per share, based on 58M fully-diluted shares outstanding as of end-1Q 2019.”

And those are four small cap concerns seeing recent analyst activity before the market opens this Wednesday. Happy Hunting.

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Hot Analyst Reads