Wells Fargo Starts Kestra Medical Technologies (KMTS) at Overweight

Wells Fargo analyst Larry Biegelsen initiates coverage on Kestra Medical Technologies (NASDAQ: KMTS) with a Overweight rating and a price target of $28.00.

The analyst comments "KMTS developed the second-to-market wearable cardioverter defibrillator (WCD) system, called Assure. WCDs help protect patients from the risk of sudden cardiac arrest (SCA). WCDs are typically prescribed to patients immediately following a heart attack or after a heart failure diagnosis and serve as a bridge to an implantable cardioverter defibrillator (ICD), if one is needed. Large, growing & underpenetrated market with a single competitor. We estimate the WW TAM for WCDs is ~$10B and, most recently, WW sales of WCDs were over ~$1.3B. Outside KMTS, there is only one other FDA-approved WCD player, Zoll Medical (owned by Asahi Kasei), which manufactures the LifeVest WCD. We estimate the US WCD market is growing mid to high single digits. We estimate Kestra's market share as of FY25E was 4.8%, and we conservatively forecast this growing to 15.7% in FY29. Our physician checks and survey indicate that Assure has advantages over LifeVest. Our checks and survey indicate that: (1) Assure is more comfortable to wear; (2) has significantly fewer false alarms; and (3) unlike LifeVest, comes in both a male and female version. All these factors have significantly improved patient compliance for Assure relative to LifeVest, and patient compliance has historically been one of the key barriers to adoption of WCDs."

For an analyst ratings summary and ratings history on Kestra Medical Technologies click here. For more ratings news on Kestra Medical Technologies click here.

Shares of Kestra Medical Technologies closed at $23.43 yesterday.

You May Also Be Interested In

• Trump Bought At Least $100,001 In Palantir Shares, Disclosure Shows - Bloomberg
• B.Riley Starts Lionsgate Studios Corp (LION) at Neutral
• JPMorgan Reiterates Neutral Rating on Alcoa (AA)