On Friday, TriSalus Life Sciences, Inc. (NASDAQ:TLSI) shares received an outperform rating from Northland, with a price target set at $12.50. The firm's coverage initiation highlights the underappreciated value of TriSalus's TriNav franchise. According to Northland, the current market valuation does not reflect the robust and consistent sales growth of over 50% year-over-year that TriNav has been delivering.
The analyst at Northland expressed confidence in the TriNav system's potential to become the standard of care (SOC) for Transarterial Chemoembolization (TACE) and Transarterial Radioembolization (TARE) procedures. The firm forecasts that by the end of 2032, TriNav's U.S. sales could reach an annual run rate of $400 million.
Moreover, Northland sees a significant untapped potential in TriSalus's immuno-oncology programs. The firm suggests that the current valuation does not account for these programs, implying that investors are essentially getting a "free call option" on the company's ventures in this area, which could lead to additional upside.
The analyst's optimistic outlook is based on the expectation of continued sales growth and the long-term potential of the company's technology and pipeline. Northland's price target suggests a substantial increase from the current trading levels of TriSalus Life Sciences' shares.
In other recent news, TriSalus Life Sciences has made significant strides in the field of oncology. The company announced the appointment of Dr. Riad Salem, a renowned expert in interventional radiology, to its Scientific Advisory Board. This addition is set to bolster the company's efforts in advancing their novel immunotherapy and Pressure Enabled Drug Delivery technology.
TriSalus has also reported a breakthrough in liver tumor treatment through its Pressure-Enabled Drug Delivery method, which showed a 117% increase in penetration with lobar infusions and a 39% increase with selective infusions compared to traditional methods.
In the realm of financial analysis, the company has received an Outperform rating from Oppenheimer and maintained a Buy rating from Jones Trading and Canaccord Genuity.
The company's revenue, annualizing at approximately $30 million with a compound annual growth rate of 40-50%, was highlighted as a robust factor. Moreover, TriSalus has secured a $50 million credit facility with healthcare investment firm OrbiMed, extending its cash runway through 2025.
Lastly, the company welcomed Liselotte Hyveled, a veteran in pharmaceutical research and development, to its Board of Directors, marking another significant development in the company's recent activities.
InvestingPro Insights
TriSalus Life Sciences (NASDAQ:TLSI) presents a complex financial picture that both supports and challenges Northland's optimistic outlook. According to InvestingPro data, the company's revenue growth is impressive, with a 67.75% increase over the last twelve months as of Q2 2024, aligning with Northland's observation of robust sales growth. This is further supported by a strong gross profit margin of 87.65%, which InvestingPro Tips highlight as "impressive gross profit margins."
However, investors should note that TLSI is "quickly burning through cash" and is "not profitable over the last twelve months," as per InvestingPro Tips. The company's operating income margin stands at a concerning -212.06%, indicating significant challenges in achieving profitability despite strong top-line growth.
The stock's performance has been volatile, with a -58.61% price return over the past six months, reflecting the market's current skepticism. Despite this, analysts see potential upside, with a fair value estimate of $11.50, significantly higher than the current trading price.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for TLSI, which could provide valuable insights for investors considering this high-risk, high-potential biotech stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.