Byron Capital Healthcare and Biotech analyst Douglas Loe says at this point in its history, investors should expect lumpy revenue from IMRIS.
Loe says he is instead focused on the company’s install base and backlog growth. He says this quarter showed strong magnetic resonance imaging system demand, and demand for the company’s integrated Visius systems is rising, too. In a research update to clients Friday, Loe maintained his BUY rating and $8 target on IMRIS.
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Winnipeg-based IMRIS was founded in 1998 to commercialize research done by MRI pioneer Dr. Garnette Sutherland at the University of Calgary. The company, which now has forty-three patents either issued or pending, designs and manufactures Magnetic Resonance Imaging Systems for use in operating rooms. The company’s VISIUS Surgical Theatre can incorporate MR imaging, CT imaging and x-ray angiography in a number of configurations. While, at an estimated cost of between $4 and $12 million, they’re not cheap, the units do allow an MR or CT scanner to be shared by more than one clinical suite.
Loe says his aggressively positive view that IMRIS’s order flow can ramp up is based on the value proposition the company’s products offer to hospital clients, which he believes are more than compelling. The Byron analyst says he is encouraged to to hear that IMRIS’s ‘funnel’ of prospective orders (orders that are not yet in formal backlog, but have been made by client hospitals that have clear access to system funding and strong justification for purchase) remains strong.
Shares of IMRIS on the TSX closed Friday up 3.3% to $3.74.