HCW assumes coverage of IsoRay at buy; PT 70 cents

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H.C. Wainwright analyst Swayampakula Ramakanth assumed coverage of IsoRay (NYSE American:ISR) with a “buy” rating and price target of 70 cents, saying the company is “at an inflection point of sustainable revenue growth.” The stock closed at 39 cents on Jan. 25.

IsoRay has been commercializing Cesium-131 (Cs-131) brachytherapy seeds for the treatment of prostate and other cancers since October 2004.

“We view IsoRay as a turnaround story because of three factors: new management and stronger commercial structure; six consecutive quarters of double-digit revenue growth that is likely to continue; and market expansion with the recently launched Blu Build and GammaTile products,” Mr. Ramakanth said.

In addition, he said that the company’s operational improvements and strong revenue growth have so far been “underappreciated by the Street, as evidenced by IsoRay’s stock decline of 29% since June 2017, compared with a 3% increase in S&P500, making it an attractive option to a growth investor.”

Abby Hardy