An opportunity in breasts?
B. Riley sees 'major tailwind' for Establishment Labs in 2023 07:47 ESTA, JNJ B. Riley analyst Neil Chatterji believes Establishment Labs' planned commercial launch of Motiva into the U.S. market will be a "major tailwind" in 2023, with the company positioned to take share with its "differentiated smooth and natural feel premium implants." The U.S. market is almost half the $1.5B global breast augmentation market, and 80% of the market is aesthetic procedures, Chatterji tells investors in a research note. Motiva should likely be well received by the U.S. plastic surgeon community upon expected approval and launch, particularly given its sub-1% complication rates historically over more than a decade versus much higher competitor rates, and its natural feel and look, says the analyst. He thinks Johnson & Johnson's (JNJ) Mentor unit and AbbVie's (ABBV) Allergan Aesthetics business unit are not a significant focus for either parent company with limited innovation investments, which makes it possible for Establishment to take share from both over time. Chatterji keeps a Buy rating on Establishment Labs with a $107 price target following yesterday's short report.
ESTA-$51.00 (don't see much reaction to short report though)