Stifel starts IntriCon at buy; PT $35

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Stifel initiated coverage of IntriCon (NASDAQ:IIN) with a “buy” rating and $35 price and also added IntriCon to the Stifel Select List. The stock closed at $19.60 on April 16.

“In our opinion, IntriCon is one of the more interesting and undiscovered small cap names in the medical technology industry,” writes analyst Jonathan Block.

“We believe the stock could appreciate about 50% based on prospects of its medical division alone where it is a key component supplier for Medtronic’s diabetes division, and should be a direct beneficiary of Medtronic’s current and future product cycles,” he added.

In addition to the prospects of the medical division, Mr. Block said IntriCon is at the forefront of disintermediating the estimated $17-billion worldwide hearing aid market.

The hearing aid market is on the cusp of significant change, spearheaded by favorable legislation, and while this may take several years to fully materialize, he said IntriCon is already starting to gain momentum.