Establishment Labs Holdings: Promising Growth Potential and Undervaluation Justify Buy Rating

Analyst Josh Jennings from TD Cowen reiterated a Buy rating on Establishment Labs Holdings (ESTA – Research Report) and decreased the price target to $60.00 from $75.00.

Josh Jennings has given his Buy rating due to a combination of factors that highlight the growth potential of Establishment Labs Holdings. The company’s Motiva implant has received FDA approval, and its rollout in the US market is showing promising early results, with significant adoption by surgeons. This success suggests that the company’s revenue projections for 2025 might be conservative, as the market share is expected to grow.
In addition to the Motiva implant, other products in Establishment Labs’ pipeline, such as the Mia offering, are gaining traction and expanding their market presence. The company is also making strides in breast reconstruction, with upcoming clinical milestones that could unlock substantial market opportunities. Furthermore, Establishment Labs is on the path to achieving positive EBITDA, indicating improving profitability. These factors, combined with the current undervaluation of the stock, contribute to a favorable outlook for the company, justifying the Buy rating.