TD Cowen analyst Josh Jennings maintained a Buy rating on Allurion Technologies today and set a price target of $6.00.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Allurion Technologies’ strategic realignment and financial management. The company’s decision to partner with distributors that have access to physician networks prescribing GLP-1s is seen as a sensible move, despite causing short-term sales disruptions. This strategic shift is expected to enhance the company’s long-term growth potential by leveraging networks equipped to deliver metabolically healthy weight loss solutions.
Additionally, Allurion Technologies has demonstrated effective cost management, with operating expenses significantly reduced by 48% year over year. The company’s operating loss has also narrowed compared to the previous year, indicating improved financial health. Furthermore, the potential for US approval remains a significant catalyst for future value, reinforcing the positive outlook on the stock. These elements collectively support Josh Jennings’s Buy rating for Allurion Technologies.
Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Humacyte. According to TipRanks, Jennings has an average return of 0.3% and a 46.79% success rate on recommended stocks.