UPDATE: Wunderlich Securities Initiates Coverage of Echo Therapeutics with Hold Rating, $1.75 PT

In a report published Friday, Wunderlich Securities initiated coverage on Echo Therapeutics ECTE with a Hold rating and a $1.75 price target. Wunderlich noted, “ECTE is developing a promising transdermal continuous glucose monitoring (CGM) technology for the critical care, diabetes, and drug delivery markets. ECTE's technology is intriguing to us, given the importance of CGM for the in-hospital critical care market, and the potential for a non-invasive CGM for the diabetes market. That said, we are cautious on several fronts, including long clinical timelines and the high likelihood of significant dilution going forward. We believe ECTE is a story that bears watching, especially as the company approaches pivotal trials, but the likelihood of significant dilution leaves us neutral on the shares.” Echo Therapeutics closed yesterday at $1.65.