Invuity Products Popular With Surgeons, Lake Street Initiates Buy Rating

Illuminating Prospects

The brokerage highlighted the company's proprietary photonics technology as providing an innovative illumination solution for doctors. The firm sees this opportunity as largely unaddressed. Thus far, the firm noted the spotlight is on robotic and laproscopic devices when it comes to minimally invasive and minimal access surgeries.

Trustworthy Business Model

Lake Street believes in Invuity's growth strategy and highly scalable business model, which opens the conduit to significant revenue growth and gross margin expansion for the coming years.

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The firm sees the company's planned establishment of women's health vertical in 2017 and proposed launch of a new modality and striking of strategic partnerships as catalysts for its shares.

Lake Street commended Invuity for its innovative marketing programs like Hidden Scar and its quest in adding new products and modalities. The company has also recently expanded its direct sales effort.

The $18 price target for the shares of the company is based on five times Lake Street's revenue estimate of $57 million.

At time of writing, Invuity was up 3.23 percent on the day, seen trading at $13.73.

Full ratings data available on Benzinga Pro.