Trending >

Profound Medical still has a huge upside, says Paradigm Capital

Profound Medical

Paradigm Capital analyst Rahul Sarugaser is calling 2019 a breakout year for medical device company Profound Medical (Profound Medical Stock Quote, Chart TSX:PRN), who’s recent rally is only the beginning, the analyst says.

“PRN’s stock price has risen from its low of $0.43 on December 20, 2018, through $0.55 at the start of 2019, and closing at $0.82 yesterday. This represents a 91 per cent lift from its low and 49 per cent since the beginning of the year,” said Sarugaser in a research note to clients on Wednesday. “We have been highlighting, since late November, that 2019 is PRN’s breakout year; as such, we see this initial stock run as simply the first of several during this catalytic year for PRN.”

The analyst outlines three catalysts for the stock in 2019: (1) a sales ramp up, as witnessed by the company’s recent Q4 which featured revenue of $1.6 million, a 33 per cent beat of Sarugaser’s estimate and 60 per cent over the consensus, which portends of things to come; (2) a strong balance sheet with $35 million in cash; (3) the completion of its Phase 3 clinical trial and submission of its 510(k) application to the FDA (estimated at late in Q1 or early in Q2).

Sarugaser has reiterated his “Buy” recommendation and $4.00 target, which represents a projected return of 388 per cent at the time of publication.

  •  
  •  
  •  

About The Author /

Jayson MacLean
Jayson is a writer, researcher and educator with a PhD in political philosophy from the University of Ottawa. His interests range from bioethics and innovations in the health sciences to governance, social justice and the history of ideas.

Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Access Expert Stock Picks for free

CLOSE

Get Stock Picks From The Pros

Sign up for our newsletter to get timely Canadian stock picks from expert financial analysts.