In the pursuit of lucrative investments, many investors are turning their attention to the medical device industry, which is poised for rapid growth and substantial long-term returns. According to industry experts, the global medical device market is expected to reach nearly $1 trillion by 2030, driven by innovative technologies that improve patient outcomes and address pressing healthcare needs.
One analyst, Kyle Bauser of B. Riley, has identified two medical device stocks that he believes are set for significant gains, with potential upside of at least 60%. These companies are leveraging cutting-edge technologies to address critical healthcare challenges, and their stocks have earned a ‘Strong Buy’ consensus rating from the broader analyst community.
The first company, InfuSystem Holdings, specializes in infusion pump products that enable precise control over fluid delivery for patients. With a diverse range of pumps available for purchase or rent, InfuSystem has established itself as a trusted partner for hospitals, surgical centers, and oncology practices. The company’s focus on providing reliable, high-quality products has driven record-level revenues, with a 6% year-over-year growth in the second quarter.
Bauser notes that InfuSystem’s competitive advantage lies in its extensive network of payer contracts, covering over 96% of lives in the U.S. He believes the stock is undervalued, with a price target of $13 implying a 97.5% upside over the next year.
The second company, Tactile Systems Technology, is a leader in developing devices for the treatment of chronic conditions such as lymphedema and respiratory difficulties. Its wearable products utilize intermittent pneumatic compression to improve patient quality of life, and have achieved a 96% patient satisfaction rate. Tactile Systems has reported strong revenue growth, with a 7% year-over-year increase in the second quarter.
Bauser is optimistic about Tactile Systems’ potential, citing its large total addressable market and opportunities for growth through investment in products, patient services, and sales operations. He rates the shares a Buy, with a price target of $23 implying a 61.5% upside over the next year.
Both of these medical device stocks offer compelling investment opportunities, with strong growth potential and a ‘Strong Buy’ consensus rating from the analyst community. As the medical device industry continues to evolve and innovate, these companies are well-positioned to capitalize on emerging trends and drive long-term returns for investors.
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