Piper Jaffray Comments On Cheap Valuations In Aesthetic Space Following JNJ's Mentor (MNT) Takeover (CUTR, BFRM)

December 1, 2008 2:07 PM EST

Analysts at Piper Jaffray commented on stocks in the consumer-driven aesthetic medical device space following Johnson & Johnson's (NYSE: JNJ) deal today to acquire Mentor Corp. (NYSE: MNT) and a prior announcement by Swedish company Q-MED of an acquisition in the space.

The firm noted that the acquisitions are a sign of attractive valuations in the consumer-driven aesthetic medical device space, which has been hit harder than most this year as sales have slumped amidst the consumer recession.

The firm said two aesthetic stocks in their universe with attractive valuations are Cutera Inc. (Nasdaq: CUTR) and BioForm Medical, Inc. (Nasdaq: BFRM), with both trading at just 0.2x EV to their 2009 sales estimates. The firm said, "CUTR has $98M in cash and investments, with another $11M in impaired auction rate securities, no debt, a market cap of $115M, and is cash-flow positive." On BFRM they said, "BFRM has Radiesse, a novel dermal filler, and enough cash - $53.0M to weather the economic recession."

The firm suspended its coverage and price target on Mentor (NYSE: MNT), as they expect JNJ to be successful in its bid and for closing to occur in early 2009.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Piper Jaffray

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?