H.C. Wainwright Reiterates Buy On Second Sight Medical, Believes 'Significant' Growth Is Coming

In a report issued Wednesday, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating and $21.00 price target on shares of Second Sight Medical Products Inc EYES.

The Event

The reiteration comes after the company announced the first implant and successful activation of the Argus II Retinal Prosthesis System in a dry age-related macular degeneration (AMD) patient. The implant was performed in a UK hospital, as a part of a feasibility study that is aimed at evaluating the safety and utility of the Argus II System. The firm believes four more patients will receive implants in the context of this study.

The Takeaway

H.C. Wainwright conceives the event as a significant milestone for Second Sight, and likes to see the company it deliver in a timely fashion and meet its expectations. However, the analysts believe a larger study should be conducted now, to support market and regulatory approvals.

Regarding to the company’s retinitis pigmentosa (RP) trials and treatment, investors should note that "the Argus II System demonstrated a reasonable safety profile with no unexpected adverse events,” the note explains. Moreover the analysts highlight, if the company manages to obtain regulatory clearance for the AMD indication, its addressable market would enlarge substantially, from 375K patients (currently treated for RP), to roughly 2 million patients.

Overall, the experts at H.C. Wainwright believe Second Sight is poised for considerable growth going forward, especially as it is “protected by a substantial patent portfolio and market lead.” In line with this, the firm is projecting a CAGR revenue growth of 50 percent till 2023, and thus thinks the company can easily grow into its high multiple.