Shares of Sientra Inc (NASDAQ: SIEN) have declined about 25 percent since the company reported its first-quarter results on May 8.
Meanwhile, the industry backdrop has improved and the near-term financing overhang on Sientra's stock has lifted with the company announcing it raised gross proceeds of $100 million in an upsized equity offering of around 17.4 million shares, according to Wells Fargo.
Wells Fargo’s David Maris upgraded Sientra to Outperform and raised the price target from $8 to $10.
Sientra’s shares came under pressure on concerns around the then-upcoming FDA panel meeting on breast implant safety and a financing overhang, Maris said in the note.
Both these concerns have been mitigated.
The FDA panel called for additional monitoring and reporting, which is a more favorable decision than an outright ban as many feared.
Maris added that, in April, the FDA approved several new styles of Sientra implants, including some textured implants, which indicate a ban may not happen. Moreover, the financing overhang has lifted with gross proceeds of $100 million being raised by the company.
Shares of Sientra trader higher by more than 7.8 percent to $6.62 at the time of publication.
Latest Ratings for SIEN
|Jun 2019||Upgrades||Market Perform||Outperform|
|Mar 2019||Initiates Coverage On||Market Perform|
|Aug 2018||Initiates Coverage On||Buy|
View More Analyst Ratings for SIEN
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