908 Devices Is Well Positioned, Analyst Says While Initiating Coverage

  • Stephens has initiated coverage on 908 Devices Inc MASS with an Overweight rating and a price target of $14.
  • The analyst notes the company has healthy gross margins in the mid-50%s, with the potential for this to move toward ~60% over time. 
  • Since going public in 2021, 908 has invested heavily in its commercial efforts, including growing its salesforce to ~80 from ~30. 
  • In addition, the company has invested in R&D, thus resulting in negative EBITDA. Stephens notes that this remains the case in the near term, but over the long term, operating leverage should result in a path to profitability.
  • 908 is burning ~$30 million of cash in 2023, declining over time, so MASS is well positioned from a balance sheet perspective to support organic efforts over the coming years. 
  • The analyst says investors need to be paying more attention. The near-term environment is tricky, so investors likely have some time. Net-net, 908, is well-positioned in rapidly growing end markets, and the industry is moving in its direction, says Stephen analyst.
  • Price Action: MASS shares are up 3.21% at $10.29 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorNewsHealth CareInitiationSmall CapAnalyst RatingsMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!