Canaccord Genuity analyst Caitlin Cronin maintained a Buy rating on TELA Bio yesterday and set a price target of $4.00.
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Caitlin Cronin has given her Buy rating due to a combination of factors that reflect TELA Bio’s strategic initiatives and financial adjustments. Despite a challenging third quarter where the company missed revenue expectations and adjusted its full-year guidance downward, TELA Bio remains confident in its commercial strategy. The recent hiring of experienced leaders from Abiomed is expected to strengthen the company’s sales force, which is crucial for future growth.
Additionally, TELA Bio has taken steps to enhance its financial flexibility through a $13 million equity raise and increased debt capacity, which will support its commercial expansion efforts. The company is also on track to meet its target of expanding its sales team, which is expected to improve sales performance. While there are short-term challenges, the management’s experience in the MedTech sector and the quality of TELA’s products provide a solid foundation for long-term growth. These factors, combined with a more conservative growth outlook, underpin Cronin’s Buy rating for TELA Bio.
In another report released on November 14, Citizens JMP also maintained a Buy rating on the stock with a $5.00 price target.