Roth starts Restoration Robotics at buy
Roth Capital Partners launched coverage of Restoration Robotics (NASDAQ:HAIR) with a “buy” rating and price target of $7.50. The stock closed at $4.86 on Dec. 15.
Restoration is focused on developing and commercializing the first and only robotic system to perform follicular unit extraction (FUE) hair restoration surgery.
“The impetus for our buy rating on Restoration shares is our belief that the ARTAS Robotic System represents a disruptive technology within the rapidly growing hair restoration market,” writes analyst Scott Henry.
“Given the reliance on future revenue growth and the need for additional financing, this investment should be considered speculative,” he added.
Mr. Henry said that the ARTAS System solves several drawbacks of manual FUE by improving the consistency, precision and speed of follicular harvesting and recipient site-making, without limitations of operator fatigue and extended training.
“We believe that this would improve procedure outcomes, increase revenues per procedure collected by the company, and boost system sales by lowering barriers to entry for physicians,” he added.
With a clinical trial completed, Restoration could receive FDA 510k clearance in the first half of 2018 and launch in the second half, Mr. Henry said.