WB starts Restoration Robotics at OP

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William Blair launched coverage of Restoration Robotics (NASDAQ:HAIR) with an “outperform” rating. The stock closed at $2.54 on Sept. 25.

“With recent FDA approval of its latest-generation device, Restoration Robotics’ platform is the most comprehensive system for minimally invasive hair transplantation,” writes analyst Margaret Kaczor.

Ms. Kaczor said minimally invasive methods have and should continue to grow at 20%-plus and take share from more-invasive surgery (still nearly half the market). About 35 million men suffer from male pattern baldness in the U.S., which “we view as an attractive backdrop for growth,” she added.

Ms. Kaczor said Restoration shares trade at 3.4 times WB’s 2019 revenue target of $27-million. “We believe Restoration Robotics has made a number of changes that should add value for practices, drive increased adoption, and deliver 20%-plus top-line growth for the next few years,” she added.

Stephen Kilmer