Leerink resumes coverage of Sientra at OP; PT $19


Leerink resumed coverage of Sientra (NASDAQ:SIEN) with an “outperform” rating and $19 price target. The stock closed at $11.98 on April 19.

Leerink suspended coverage of Sientra in 2015 following a CE Mark suspension and disruption in manufacturing. “Fast forward 2.5 years to today, and Sientra, under new leadership, is about to re-launch its breast implant line (now called OPUS) with U.S. manufacturing capability,” writes analyst Richard Newitter.

“Furthermore, we think the company will be in a stronger competitive position upon its return to market as a result of several M&A transactions over the last two-to-three years that have not only broadened the breast product portfolio but also included a transformational deal in 2017 (miraDry), providing Sientra with a unique technology, targeting a large and underpenetrated $1.5-billion-plus aesthetic market opportunity in sweat reduction/hyperhidrosis,” he added.

Mr. Newitter figures now is the time to be building positions in Sientra, coming hot off the company's April 18 FDA approval of the OPUS (U.S. manufactured) implant, and as the company gets back on offense in the $550-million U.S. breast implant market - a segment where Sientra is the No. 3 player and there are high barriers to entry.

“We believe the company is on the cusp of a significant growth re-acceleration trajectory that is flying under-the-radar and significantly mispriced in our view,” he added.