UPDATE: Cantor Fitzgerald Initiates Coverage on Zeltiq Aesthetics as Momentum Story Shows Little Sign of Cooling Off

In a report published Friday, Cantor Fitzgerald analyst Jeremy Feffer initiated coverage on Zeltiq Aesthetics ZLTQ with a Buy rating and $20.00 price target. In the report, Cantor Fitzgerald noted, “We are initiating coverage of ZLTQ with a BUY rating and a $20 price target. Despite the substantial run in the stock, we still see reasons to be bullish, namely 1) significant runway in the fat reduction market, with Zeltiq having penetrated only a relatively small fraction of U.S. and O-U.S. practices, 2) a continuation of the secular shift away from liposuction surgery toward lower-cost, non-invasive alternatives, 3) new applicators and indications on tap for 2014, 4) sustainable above-market revenue growth, as evidenced by preliminary 2014 guidance of 15-20% on top of the 40% expected for 2013, and 5) a clear path to sustainable positive cash flow generation by the end of 2014.” Zeltiq Aesthetics closed on Thursday at $15.56.