Piper Sandler says buy Cutera shares on today’s weakness

Piper Sandler analyst Matt O’Brien tells investors in a research note that Cutera announced on Wednesday night a proposed convertible notes offering of roughly $100M, which was "certainly surprising," but management is executing the offering to support strong expected uptake of Aviclear in the coming quarters, new launches in 2023 and to accumulate a cash buffer in case of a recession next year. O’Brien says these reasons "make strategic sense," and give him more conviction in the Aviclear growth trajectory, and encourages investors to buy shares on the current weakness. The analyst made no change to the firm’s Overweight rating or $55 price target.