After spending “several weeks” assessing LivaNova’s known product pipeline in four key areas, Vagus Nerve Stimulation for treatment-resistant depression and congestive heart failure, along with ImThera for obstructive sleep apnea and Caisson for mitral valves, Piper Jaffray analyst Matt O’Brien believes the value of the company’s portfolio today is $117 per share.
This roughly doubles the current market capitalization by addressing total addressable markets of $70B, O’Brien tells investors in a research note titled “Deep Dive on Product Pipeline; We Believe Significant Value Creation Exists.”
The analyst sees LivaNova obtaining a favorable coverage decision in treatment-resistant depression based on his assessment of the factors Medicare illuminated 11 years ago, which he believes the company has sufficiently addressed. He thinks treatment-resistant depression is worth nearly $80 to the stock, of which he believes $25 is already priced in. O’Brien encourages investors to start or build positions and reiterates an Overweight rating on LivaNova. He boosted his price target for the shares to $145 from $135.
The stock closed yesterday down 3%, or $3.48, to $115.33.
