Itamar Medical (ITMR) ASP Premium Should Buffer Volume Declines, PT Raised to $30 at Cowen

Cowen analyst Joshua Jennings raised the price target on Itamar Medical (NASDAQ: ITMR) to $30.00 (from $27.00) on the belief that the company is best positioned to capitalize on COVID-19 induced shifts in the sleep testing market.

The analyst reiterated an Outperform rating, stating "We forecast 2Q revenues of $7.5M (+2%) just beneath the $7.8M (+6%) Street estimate. There are several moving pieces in Itamar’s 2Q revenue performance. These include rising disposable WatchPAT ONE demand in the U.S., sleep lab shutdowns shifting polysomnogram tests to home sleep apnea tests (HSAT), and lower clinic visits reducing home sleep test prescriptions". "ITMR's disposable WatchPAT ONE likely facilitated 2Q HSAT share capture, while the 2x premium ASP should buffer volume declines. ITMR could be one of the few device companies to deliver 2Q revenue growth".

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