Analysts Offer Insights on Healthcare Companies: MiMedx Group (NASDAQ: MDXG) and Cytori Therap. (NASDAQ: CYTX)

By George MacDonald

There’s a lot to be optimistic about in the Healthcare sector as 2 experts just weighed in on MiMedx Group (NASDAQ: MDXG) and Cytori Therap. (NASDAQ: CYTX) with bullish sentiments.

MiMedx Group (NASDAQ: MDXG)

Needham analyst Michael Matson reiterated a Buy rating on MiMedx Group (NASDAQ: MDXG) today and set a price target of $12. The company’s shares opened today at $7.10, close to its 52-week low of $6.64.

Matson said, “The FDA has agreed to shorten the immunogenic follow- up for MDXG’s injectable product’s plantar fasciitis trial to 12 months from 24 months which could allow for approval in 2018 vs. 2019 previously. More importantly, MDXG disclosed that it is running two wound trials for its sheet products that it believes could support a BLA if necessary. MDXG also indicated that the cost of these three trials is around $2M each and most of this has already been incurred. Some investors fear that the FDA will reclassify the sheet products as biologics and we believe that the associated costs of complying with this has been an overhang on MDXG’s stock. MDXG is hosting a call at 10:30 am ET on 9/7/16 to discuss the trials in more detail.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 6.5% and a 60.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on MiMedx Group is Moderate Buy and the average price target is $12, representing a 69.0% upside.

In a report released today, Brean Capital also reiterated a Buy rating on the stock with a $12 price target.
Cytori Therap. (NASDAQ: CYTX)

Maxim Group analyst Jason Kolbert reiterated a Buy rating on Cytori Therap. (NASDAQ: CYTX) today and set a price target of $5. The company’s shares opened today at $2.07, close to its 52-week low of $1.81.

Kolbert wrote, “Scleroderma U.S. The first readout from the U.S. (STAR) phase III scleroderma trial (enrollment is now complete) should be available by mid-2017, followed by the report of 12-month U.S. pivotal/phase III trial data for scleroderma hand dysfunction by YE17. Orphan designation has been requested. CYTX plans to submit a Premarket Approval Application (PMA) to the FDA in 1Q18. We expect the company could receive FDA approval in 4Q18 and potentially launch the product in the U.S.”

According to TipRanks.com, Kolbert is ranked 0 out of 5 stars with an average return of -14.9% and a 30.0% success rate. Kolbert covers the Healthcare sector, focusing on stocks such as ContraVir Pharmaceuticals Inc, Brainstorm Cell Therapeutics, and ImmunoCellular Therapeutics.

Cytori Therap. has an analyst consensus of Moderate Buy, with a price target consensus of $11.