Carlsmed, Inc. (CARL) has received a new Buy rating, initiated by Bank of America Securities analyst, Travis Steed.
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Travis Steed has given his Buy rating due to a combination of factors including Carlsmed’s innovative approach in spine fusion surgery. The company has developed the Aprevo Technology Platform, which features custom 3D printed implants and AI-enabled surgical planning software, offering a personalized fit for each patient’s vertebral space. This technology is expected to improve surgical outcomes and reduce the need for revision surgeries, with current revision rates significantly lower than traditional methods.
Furthermore, Steed anticipates a steady increase in surgeon adoption, projecting the addition of 20-25 new surgeons each quarter through 2027. This growth is supported by positive feedback from key opinion leaders and a comparison to other successful spine product ramps. Carlsmed’s strong revenue growth projections and asset-light model contribute to a favorable financial outlook, justifying a valuation at the high end of the market. The $16 price objective reflects a premium valuation based on expected sales growth and high gross margins, despite potential risks related to market acceptance and competition.
In another report released today, Piper Sandler also initiated coverage with a Buy rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CARL in relation to earlier this year.