SILK - Silk Road Medical draws Buy at B. Riley on valuation mismatch
2023-03-31 13:01:59 ET
- B. Riley Securities launched its coverage of MedTech firm Silk Road Medical ( NASDAQ: SILK ) with a Buy rating on Friday, noting the stock's undervaluation despite its potential in the market for carotid artery disease (CAD).
- The analyst Neil Chatterji notes that Silk Road Medical ( SILK ) is a pure play in the global CAD market worth $5B, given its less invasive trans carotid artery revascularization (TCAR) procedure for stroke prevention.
- With CAD accounting for more than a third of ischemic strokes, the company is on track to record ~30% revenue CAGR in 2022 – 2024E, the analyst argues, citing factors such as rising demand for TCAR procedures and the benefit of label expansion to standard risk patients.
- Chatterji issues a $58 per share target on SILK and notes that the stock, trading at a discount to similar SMID-cap MedTech names following a ~25% decline since the company's Q4 2022 results, looks "attractive at these levels."
- Seeking Alpha contributor Peter F. Way issued a Strong Buy on Silk Road Medical ( SILK ) in early March, seeing over ~ a 30% gain.
For further details see:
Silk Road Medical draws Buy at B. Riley on valuation mismatch