Roth starts BioSig Technologies at buy; PT $14


Roth Capital Partners initiated coverage of BioSig Technologies (NASDAQ:BSGM) with a “buy” rating and $14 price target. The stock closed at $3.97 on Dec. 4.

BioSig is a medical device company developing the PURE EP system, a biomedical signal-processing platform initially aimed at improving the efficiency, efficacy and safety of cardiac ablation procedures. PURE EP received 510(k) clearance in August 2018 and a limited launch is underway.

“The impetus for our buy rating on BioSig shares is our belief that the company will successfully launch the PURE EP system into the large and rapidly-growing electrophysiology (EP) market,” writes analyst Dr. David Solomon.

He cites five reasons for his investment thesis: EP's rapid growth has been driven by technological advancements, yet signal processing remains antiquated; PURE EP appears to be a superior signal processor; BioSig’s leadership, advisors and strategic partners appear to validate the technology and could minimize execution risk; an attractive valuation; and substantial revenue growth forecast for BioSig.

“We believe that BioSig’s current enterprise value of about $62-million does not reflect the company's growth outlook, recent EP acquisitions, and the potential value of its platform beyond EP,” Dr. Solomon said.

Stephen Kilmer