Oppenheimer Upgrades Tactile Systems Technology (TCMD) to Outperform

November 13, 2020 6:03 AM EST
Get Alerts TCMD Hot Sheet
Price: $7.41 --0%

Rating Summary:
    5 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 5 | Down: 3 | New: 14
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Oppenheimer analyst Suraj Kalia upgraded Tactile Systems Technology (NASDAQ: TCMD) from Perform to Outperform with a price target of $55.00.

The analyst comments "In what can be safely characterized as a "nutty" environment for medtech stocks, with valuations jumping ~40% from pre-COVID-19 levels without any appreciable change in outlook, Tactile Medical stock has relatively underperformed (TCMD down 4% vs. NASDAQ up 49%, DJIA up 25%). In our view, Tactile, at least on a relative basis, is undergoing some positive subliminal changes, which could yield long-term benefits: 1) An unanticipated collateral impact of COVID-19 has been to force the company to adopt virtual training of patients; 2) Independent contractor use might wane over time; 3) The math suggests OpEx leverage moving forward; 4) Valuation relative to the space is quite attractive relative to fundamentals. Our $55 PT represents ~4x our newly established FY22 sales estimate of $275M."

For an analyst ratings summary and ratings history on Tactile Systems Technology click here. For more ratings news on Tactile Systems Technology click here.

Shares of Tactile Systems Technology closed at $38.19 yesterday.

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