Matthew O’Brien, an analyst from Piper Sandler, has initiated a new Buy rating on Kestra Medical Technologies Ltd. (KMTS).
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Matthew O’Brien has given his Buy rating due to a combination of factors that highlight Kestra Medical Technologies Ltd.’s potential for substantial growth. The company has developed a next-generation wearable cardioverter defibrillator (WCD) that offers significant advantages over the current market leader, Zoll. Kestra’s device is designed for enhanced comfort, allowing patients to wear it for an average of 23 hours a day compared to Zoll’s 15 hours. This increased wear time is crucial for patient safety and could lead to higher adoption rates.
Furthermore, Kestra’s WCD incorporates four monitoring channels, improving accuracy and reducing false positives significantly compared to its competitor. The market for WCDs is currently a $1 billion opportunity in the U.S., with Kestra poised to capture a significant share due to its superior product. Despite challenges such as displacing an established competitor and potential adoption barriers, the anticipated 40% growth in the coming years and the recent IPO’s capital infusion position Kestra well for future success. These factors contribute to O’Brien’s optimistic outlook and Buy rating for KMTS.
In another report released today, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $28.00 price target.