Canaccord starts Heska at buy


Canaccord Genuity initiated coverage of Heska (NASDAQ:HSKA) with a “buy” rating and price target of $115. The stock closed at $91.38 on Oct. 4.

“Our survey work and checks suggest ongoing attractive market trends in animal health that we expect to continue for at least the next two years,” writes analyst Mark Massaro.

“Backed by Heska’s vet-friendly pricing, sales and marketing initiatives, we believe Heska can likely hit 15% market share in the U.S. in about three-to-five years from about 10% now,” he added.

“More importantly, with time we expect Heska will significantly expand its footprint outside of the U.S., where sales today are less than 9% of total revenue.”

Mr. Massaro said that while Heska's stock price had a stellar run in 2016 and the first half of 2017, “we got a pullback that we believe offers investors an attractive entry point.”