David Turkaly, an analyst from JMP Securities, reiterated the Buy rating on TELA Bio (TELA – Research Report). The associated price target is $7.00.
David Turkaly’s rating is based on several key considerations. Despite the challenges TELA Bio faced in the fourth quarter of 2024, such as competitive recruitment by smaller companies and external macroeconomic factors, Turkaly sees the company’s shift from plastic mesh to biologics as a significant advantage. He believes that TELA Bio’s differentiated assets offer substantial clinical and economic benefits, which should not be overlooked by investors.
Moreover, Turkaly highlights the potential of TELA’s main biologic product platforms, particularly OviTex, which is noted for its biocompatibility, safety features, and cost-effectiveness compared to competitors. Despite a temporary setback in sales due to staffing issues, the company’s strategic adjustments, including a new compensation plan and sales force realignment, are expected to stabilize future performance. These factors contribute to Turkaly’s confidence in the company’s sustainable growth and the decision to maintain a Buy rating, albeit with a revised price target.
In another report released yesterday, Lake Street also reiterated a Buy rating on the stock with a $8.00 price target.
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