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Sientra: Shares Could More Than Triple From Here, Says Analyst
Stock Analysis & Ideas

Sientra: Shares Could More Than Triple From Here, Says Analyst

The U.S. plastic surgery market is thought to be worth around $13 billion. With its new acquisition, Sientra (SIEN) will be hoping to improve its positioning in this lucrative space.

On Wednesday, the medical aesthetics company announced it plans on acquiring AuraGen’s fat grafting technology for $17.5 million. This consists of $13.5 million in stock, $1 million in cash when the deal closes, and another $3 million in cash in 12 months time. There’s a potential $8.5 million earnout too, subject to the achievement of certain clinical endpoints.

While the product has yet to hit the market, it’s already FDA-approved and Sientra plans a full commercial launch in January 2023. Until then, the company will work on scaling manufacturing and sharpening its go-to-market strategy.

Colliers analyst Kyle Bauser believes the planned acquisition “fits well within the Company’s existing call points… The technology will enhance the Company’s offerings for board certified plastic surgeons and should improve upon the products currently available, particularly as it relates to ease of use.”

The FDA-cleared AuraGen system was developed by Harvard researchers and via filtering, washing, and concentrating cells, processes fat. Compared to the average fat retention rate of 40% for traditional saline wash solutions, the company says that based on early clinical evidence, the AuraGen technology has shown fat retention rates above 70%.

While Bauser expects the product to get “higher utilization rates” for breast reconstruction procedures rather than augmentation, given the less user-friendly fat grafting technologies currently available, he believes there is a “significant opportunity” for Sientra to take share in this market too.

The company is also likely to pursue new aesthetic applications including face, hand, and gluteal augmentation. By using a patient’s own tissue for longer lasting results of more than 12 months, Sientra is seeking to be a disruptive force in the synthetic filler space.

To this end, Bauser rates SIEN a Buy along with a $10 price target. Should his thesis play out, a twelve-month gain of 212% could potentially be in the cards. (To watch Bauser’s track record, click here)

Are other analysts in agreement? They are. 5 Buys and no Holds or Sells have been issued in the last three months. So, the message is clear: SIEN is a Strong Buy. Given the $11.40 average price target, shares could soar 258% from current levels. (See SIEN stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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