Senseonics Holdings (SENS) Earnings Beat Overshadowed by FDA Approval Delay - BTIG

BTIG analyst Sean Lavin reiterated a Buy rating and $1.00 price target on Senseonics Holdings (NYSE: SENS) after the company preannounced Q4 revenue of $3.5M, $1M higher than the prior outlook of $2.5M,but also announced that anticipated FDA approval for the Eversense 180-day product is delayed by at least 60 days, as the agency works on COVID-related Emergency Use Authorization applications. The company believes there is still potential for the approval by the end of 2Q21.

The analyst stated "The timeline shift is disappointing but understandable, given the extraordinary circumstances around the pandemic and timing of vaccines. SENS shares rocketed 50% higher in Wednesday trading due to market dynamics that seem unrelated to near-term operations. We update our model for preannounced Q4 revenue and increase share count to reflect the completed conversion of debt during the quarter. We shift some 2021 U.S. revenue from Q2 to Q3 to reflect the new approval timeline, but we already assumed that much of the U.S. selling traction would start in the second half of the year. Even with the move higher today and the minor FDA setback, we continue to view Senseonics as undervalued in relation to its market opportunity".

For an analyst ratings summary and ratings history on Senseonics Holdings click here. For more ratings news on Senseonics Holdings click here.

Shares of Senseonics Holdings closed at $1.15 yesterday.

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