Establishment Labs initiated with a Buy at Citi

Citi analyst Joanne Wuensch initiated coverage of Establishment Labs with a Buy rating and $79 price target. Establishment Labs is a medical technology company focused on improving patient safety and aesthetic outcomes, including the manufacturing and distribution of implants, capital, and consumables used in breast augmentation and breast reconstruction procedures, the analyst tells investors in a research note. Despite a difficult regulatory environment for breast implants, Establishment is positioned to come to the U.S. market with three-year U.S. pivotal data, 10-year outside the U.S. clinical data, and a “differentiated” product in a market that has not seen new technology in over a decade, says the firm.