Equities research analysts at Stephens started coverage on shares of Tearlab Corporation (NASDAQ: TEAR) in a research note issued to investors on Thursday, TheFlyOnTheWall reports. The firm set an “overweight” rating on the stock.
Stephens Inc. has initiated coverage of TearLab (NASDAQ:TEAR; TSX:TLB) with an “overweight” rating and an $11 price target, saying the company is attractively positioned with a unique technology that addresses a large unmet need for the diagnosis and management of dry eye disease. The stock was quoted at $9.46 Thursday afternoon.
buy initiation“We are very optimistic about the [near-term] and [long-term] potential of the technology as the system is already both FDA-approved and CLIA-waived, allowing it to be placed directly into ophthalmology and optometry practices,” writes analyst Drew Jones.
He said TearLab’s Osmolarity system also does not face any immediate competition. “Taking into account the company’s commercialization strategy (focused on ophthalmologists) and what we believe is a conservative approach to sizing the market, we believe the market opportunity for TearLab is around $576-million today.”
Longer term, he expects TEAR to expand its sales effort to include optometrists that would “easily push the market opportunity for TearLab north of $1.4-billion.”
He said the stock’s valuation is “compelling despite a recent run up.”