Senseonics Pops 47% On 4Q Sales Outlook; BTIG Says Stock ‘Undervalued’

Shares of Senseonics Holdings jumped 47.1% in Wednesday’s extended market trading after the medical technology company raised its 4Q sales guidance by 40% to $3.5 million. Earlier, the company had projected revenues of $2.5 million for the quarter.

Senseonics (SENS) CEO Tim Goodnow said, “Strong fourth quarter performance was driven by sales in Europe and supported by Ascensia’s initial US sales.”

The company reiterated its revenue guidance for 2021. Next year, Senseonics expects to generate revenue of between $12 million and $15 million. The company said that its 2021 sales outlook is “based on installed base, acceleration of Ascensia’s commercial activities and other factors.” (See SENS stock analysis on TipRanks)

Meanwhile, Senseonics also announced that the approval for the Eversense 180-Day product has been delayed by at least 60 days due to pandemic-related issues at the US Food and Drug Administration (FDA). The company expects the FDA to take a decision by the end of the second quarter of 2021.

Following the 4Q business update, BTIG analyst Marie Thibault reiterated a Buy rating on the stock. In a note to investors, Thibault wrote, “We shift some 2021 U.S. revenue from Q2 to Q3 to reflect the new approval timeline, but we already assumed that much of the U.S. selling traction would start in the second half of the year. Even with the [stock] move higher today and the minor FDA setback, we continue to view Senseonics as undervalued in relation to its market opportunity.”

Thibault maintained a price target of $1 (54.6% upside potential). Shares have plunged 29.4% year-to-date.

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