Northland Securities Sticks to Their Sell Rating for Obalon Therapeutics Inc

By Ryan Adsit

In a report released today, Suraj Kalia from Northland Securities reiterated a Sell rating on Obalon Therapeutics Inc (NASDAQ: OBLN), with a price target of $6. The company’s shares opened today at $10.88.

Kalia wrote:

“We are initiating coverage of Obalon Therapeutics with an Underperform rating / $6 PT. We are concerned that forward estimates are too high, the science is unclear, the logistical issues of 3- intragastric balloon (IGB) procedures remain, and finally, ponying up $8,000 or so in a cash-pay procedure for a 15 lb. weight loss makes this product more suitable for a wealthy, “event-driven” motivated patient, therefore making the realistic TAM quite small.”

According to TipRanks.com, Kalia is a 3-star analyst with an average return of 4.3% and a 56.3% success rate. Kalia covers the Healthcare sector, focusing on stocks such as Xtant Medical Holdings, Edwards Lifesciences, and Intuitive Surgical.

Obalon Therapeutics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $16.

The company has a one year high of $15.88 and a one year low of $8.27. Currently, Obalon Therapeutics Inc has an average volume of 47.21K.

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Obalon Therapeutics, Inc. focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. Its product includes medical balloon technology for weight loss therapy which consists of a capsule containing a balloon that is swallowed and then remotely inflated. The company was founded in January 2008 and is headquartered in San Diego, CA.