Mackie Research downgraded Helius Medical Technologies (TSX:HSM) to “hold” from “speculative buy,” but maintained its price target of $2.70 (Canadian). The stock closed at $3.50 on Sept. 19.
Analyst Andre Uddin writes that Helius has had a good run, with the stock price up 187% since he initiated coverage on June 29, 2016.
“Helius now boasts a market cap of $320-million, yet there is very little clinical data generated to date, albeit the clinical outcomes for a small number of patients treated with [its neuromodulation device], PoNS, [which] has looked promising,” he added.
Helius is currently conducting a pivotal trial with PoNS in traumatic brain injury (TBI) patients, with the results expected in late September or early October. “There is risk that the placebo rate is high for this TBI pivotal trial,” Mr. Uddin said.