Kestra Medical Technologies Ltd. (KMTS) has received a new Buy rating, initiated by Wolfe Research analyst, Michael Polark.
Michael Polark has given his Buy rating due to a combination of factors that highlight Kestra Medical Technologies Ltd.’s potential in the wearable cardioverter defibrillator (WCD) market. Kestra’s ASSURE device, launched in the US in 2022, aims to capture significant market share from the current leader, ZOLL, by addressing key issues such as patient compliance and comfort. The ASSURE device enhances wearability and reduces false alarms, which have been problematic for ZOLL, thus making it an attractive alternative for patients and healthcare providers.
Polark also notes that the WCD market is currently dominated by a single player, presenting a substantial opportunity for Kestra to grow. The company’s leadership team brings extensive experience in the defibrillation space, which is expected to drive Kestra’s market penetration. Drawing parallels to Axonics’ success in the sacral neuromodulation market, Polark anticipates Kestra could achieve a similar trajectory, with projections of Kestra capturing 40% market share over the next 15 years. This optimistic outlook is supported by a long-term discounted cash flow model that forecasts robust growth in the WCD category.
In another report released today, Piper Sandler also initiated coverage with a Buy rating on the stock with a $27.00 price target.