Tactile Systems initiated with a Buy at B. Riley

B. Riley last night initiated coverage of Tactile Systems with a Buy rating and $23 price target. Tactile is a medical technology company that provides compression garments for the treatment of lymphedema/vascular disease and bronchiectasis/respiratory conditions, the analyst tells investors in a research note. The firm says management is focused on margin expansion through technology and workflow enhancements to simplify and accelerate time to revenue for its products, in addition to next-generation launches and clinical evidence generation. It believes the company’s enhanced margin profile remains “significantly underappreciated, as does the current valuation.”