HCW starts SeaSpine at buy

H.C. Wainwright initiated coverage of SeaSpine Holdings (NASDAQ:SPNE) with a “buy” rating and 12-month price target of $15. The stock closed at $12.19 on June 7.

SeaSpine is an orthopedic surgical products company, which was spun out from Integra LifeSciences in 2015, and is focused on development and marketing of specialized hardware and orthobiologic products for spine surgeries.

Analyst Swayampakula Ramakanth writes that in the last two years, the company completed a period of reorganization, introduced 20 new products, and forged partnerships with 97 new distributors in the U.S.

“We believe these forward-looking actions have positioned the company to enter a period of double-digit percent growth in the near-term, and we project revenues to grow to $321-million in 2027 from $132-million in 2017,” he added.

At the current valuation of one times estimated sales in 2017, “we believe SeaSpine makes an attractive choice for growth investors interested in the orthopedic surgery space,” Mr. Ramakanth said.