J.P. Morgan analyst Allen Gong has maintained their bullish stance on ESTA stock, giving a Buy rating yesterday.
Allen Gong’s rating is based on the promising growth trajectory of Establishment Labs Holdings, particularly driven by the successful launch of their Motiva brand in the US. The company has seen a significant increase in daily orders, indicating strong market acceptance and potential for revenue growth. Management’s guidance suggests confidence in achieving adjusted EBITDA profitability by the end of 2025, with further cash flow profitability expected in 2026.
Establishment Labs is also benefiting from international growth, with stable performance in Latin America and China, and expansion in APAC and EMEA regions. The company’s innovative product offerings, such as the minimally invasive Mia Femtech, are expected to capture additional market share. The valuation of the company, with a price target set at $54, reflects a modest premium over peers, justified by the company’s differentiated product portfolio and growth opportunities.
In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $62.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ESTA in relation to earlier this year.