EnteroMedics is Favorite Idea for 2014 by Lake Street
In a report published Friday, Lake Street Capital Markets analyst Bruce Jackson rated EnteroMedics (NASDAQ: ETRM) as the favorite idea for 2014.
Jackson reported that EnteroMedics if the best positioned to benefit from several near-term trends. The analyst commented, “First, the current macro favors companies whose products address unmet treatment needs while making healthcare delivery more efficient and effective. Second, we see a continued improving environment for growth stocks and small-caps in 2014 as the Fed begins to taper and the yield curve should steepen. Third, small caps like ETRM should also continue to benefit from acquisition activity as large companies with strong balance sheets deploy cash in search of new growth.”
Lake Street anticipates that the company will shortly obtain an FDA panel date for the VBLOC obesity treatment device, which should take place at the end of the first quarter. In addition, Jackson noted that positive clinical data for new drugs, licensing deals, and potential M&A activity aided the healthcare sector in leading the broader market indices for all market cap segments in 2013. The analyst continued, commenting that investors are beginning to pursue higher-growth segments within Healthcare and specifically noted that Healthcare Information Technology moved up “in the anticipation of major changes being made to the healthcare payment systems in the United States.”
EnteroMedics closed at $2.20 on Thursday. Shares are currently up as much as 9.09% at $2.40.
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