Opsens has huge upside, says Paradigm Capital

The risk-to-reward ratio on Opsens (Opsens Stock Quote, Chart, News: TSXV:OPS) is compelling, says Paradigm Capital analyst Alan Ridgeway.

In a research update to clients yesterday, Ridgeway maintained his “Buy” rating and one-year target of $2.75 on Opsens, implying a return of 299% at the time of publication.

The analyst’s update follows on the heels of Tuesday’s news in which Opsens announced results from its first clinical work on humans for its fractional flow reserve (FFR) offering, OptoWire. 27 patients were successfully diagnosed using Opsens’s FFR products, and the company noted that preliminary results presented during the Transcatheter Cardiovascular Therapeutics Conference in Washington indicate that all four primary end points of the study were completed with success.

Dr. Olivier F. Bertrand, principal investigator of the pilot study and director of the international chair on interventional cardiology and transradial approach, was upbeat about the product’s potential.

“Fibre optic technology has allowed for the development of improved PCI-like floppy wire with exceptional pressure stability (no drift) and perfect connectivity,” he said. “OptoMonitor is easy to use and ready to be integrated in the cath lab with printing and recording capabilities, although direct connection to cath lab hemodynamic system is possible. Extended use of FFR and potential-added clinical value should be investigated in various clinical scenarios.”

Ridgeway says Opsens current share price is attractive for a number of reasons. He says the company’s oil and gas sensor business protects the company’s downside. He is also optimistic that OptoWire will be approved in 2014. If that happens, the analyst believes the company’s intellectual property will be sought by acquirers or partners who want in on the growing FFR market.

At press time, shares of Opsens were even at $0.70.