Envoy Medical initiated with a Buy at Lake Street

Lake Street initiated coverage of Envoy Medical with a Buy rating and $3 price target. On September 27, stockholders approved the business combination of Envoy Medical with Anzu Special Acquisition Corp. and the combined company’s shares began trading on the Nasdaq on October 2, the firm noted. While the current balance sheet “likely necessitates additional capital in the near term,” the firm believes the post de-SPAC selloff is “overdone,” the analyst added. In late 2022, the first patients were implanted with the Acclaim, the company’s fully implantable cochlear implant in its early feasibility study at the Mayo Clinic, and the firm believes investors will be rewarded for taking a longer-term view as the company seeks FDA approval around 2026.