Roth starts Cutera at buy

Roth Capital Partners launched coverage of Cutera (NASDAQ:CUTR) with a “buy” rating and $32 price target. The stock closed at $24.50 on June 23.

Cutera has built a comprehensive product portfolio, offering multiple technologies, platforms, and applications that address the major segments within the non-surgical aesthetic market, including tattoo, hair removal, resurfacing, pigment, vascular, and body contouring.

“In our opinion, the company is well-positioned to continue to drive increased productivity within its expanding U.S. sales force, accelerate international growth, and push toward more substantial profitability over the coming years, an aspect we believe remains underappreciated,” writes analyst Chris Lewis.

Just this year, three of Cutera’s primary competitors - Zeltiq, CynoSure, and Syneron - have been acquired. “Given the heightened strategic interest in the sector, and lack of remaining legitimate pure-play independent aesthetic device companies, we suspect Cutera may become an increasingly attractive takeout candidate to a potential suitor,” he added.