Hold Rating on Establishment Labs: U.S. Growth Potential vs. International Challenges

Establishment Labs Holdings (ESTA) has received a new Hold rating, initiated by Needham analyst, Michael Matson.

Michael Matson has given his Hold rating due to a combination of factors impacting Establishment Labs Holdings. The anticipated launch of the Motiva product in the U.S. market is expected to be a significant growth catalyst and could present opportunities for upside potential. Additionally, the company’s minimally invasive procedures may contribute to expanding the breast implant market.
However, Matson expresses concerns over the company’s international business performance, which has shown signs of weakness. The ongoing trade war poses a potential risk to international growth, which could offset some of the positive developments in the U.S. market. Despite the potential for improved margins driven by a shift towards the U.S. market and stronger revenue growth, these mixed factors lead to a Hold rating.